Marijuana Investors Bet Big On Long-Term Growth Over Short-Term Earnings As Market Value Rises By 39%
Portfolio Pulse from Nicolás Jose Rodriguez
The Viridian Cannabis Deal Tracker reports a 39% increase in market value for major cannabis companies, with valuation multiples rising for 11 out of 14 major multi-state operators (MSOs). This growth is attributed to investors betting on long-term growth over short-term earnings, with companies like Curaleaf (CURLF) and Schwazze (SHWZ) experiencing valuation increases despite flat or declining EBITDA. GTI (GTBIF) and Cresco (CRLBF) also saw increases in both EBITDA multiples and estimates, indicating strong fundamentals. The anticipation of cannabis rescheduling is driving multiple expansions, with a focus on EBITDA growth as a key indicator of corporate health.
April 15, 2024 | 11:53 pm
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POSITIVE IMPACT
Cresco's valuation improves with increased EBITDA multiples and estimates, indicating strong fundamentals and potential for growth.
Cresco's positive trend in EBITDA multiples and estimates reflects investor confidence in its strong fundamentals and growth prospects.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Curaleaf's valuation multiples have risen due to investor focus on future potential over current earnings, despite flat or declining EBITDA.
Investors are valuing Curaleaf's future growth prospects higher, indicating a positive outlook on the company's long-term potential despite current financial performance.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
GTI shows increased EBITDA multiples and estimates, highlighting strong fundamentals and growth potential in the cannabis sector.
GTI's increase in both EBITDA multiples and estimates suggests robust fundamentals and a positive growth outlook, making it an attractive investment.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Schwazze experiences valuation increase due to investor optimism on future growth, despite flat or declining EBITDA estimates.
The increase in Schwazze's valuation multiples reflects investor confidence in its long-term growth potential, outweighing current earnings performance.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80