Investment Analysis and Valuation of the Cannabis Industry
Your Comps Are Wrong: Why and How to Use Comp Tables
Why do we think comp tables are so important?
They are the key tool in understanding investment opportunities and risks in an industry.
And how can you manage a portfolio with wrong data?
- provide a menu of available public investment choices for purchase or sale
- show the range of valuations of the choices, showing discrepancies that may or may not converge in the future. Public valuations also inform private company valuations and acquisition pricing
- show the size and leverage of the public options
- show the range of operating margins and opportunities for margin expansion or compression
- show the cost of capital for companies and the industry, which can be applied to similar companies in the private market either raising new capital or deciding whether to sell to another company
- on the second page, the stock price performance shows what is moving up and down, helps isolate specific performance vs peers and the broader market
Publicly Available Commentary
Our cannabis comp table priced as of December 18, 2020 can be downloaded below Last week was especially busy for the cannabis industry, and the comp table has been updated to include two new deals. In Canada, Tilray and Aphria announced to merge (well, Aphria...
Our cannabis comp table priced as of December 11, 2020 can be downloaded below Since the last public comp table on December 7, we have added Weedmaps / Silver Spike Acquisition Corp, taking the company guidance for the forward estimates from the presentation at the...
The discount in US-focused cannabis stocks vs Canada-focused stocks is starting to reverse, at least on EV/S, following stronger than expected results in the US, while Canada remains beset by price pressure against the illicit market. Investors must not paint all...
Comp tables for the cannabis sector published weekly from September 2019 until April 2020 can be found at MBizDaily at this link. List of Archived Comp Tables at MJBizDaily These comp tables are dynamically adjusted for pro forma share counts and capital structures...
Comp Tables Premium Members
This content is for subscribers only.
On the Comp Table page, we provide:
- Fully diluted, in-the-money share counts
- Downloadable capital structure and sell-side estimate data
- Implied valuations
- Stock returns over various periods
A public sample with Premium Only details hidden can be downloaded below