Am i the fool?Say we earn $5mm gross revenue in Q1 FY2022 (extrapolated from current information on BC sales, sales already in I/S, estimations on other channels such as Quebec, Sask, Atlantic Canada, etc.), with zero revenue growth over the year. This would bring Nextleaf to roughly $20mm in annualized sales.
Reviewing other multiples for competitors in the firm (ie. Valens, Neptune, MediPharm, etc.), they're all trading anywhere between 5-9x sales. If Nextleaf is positoned on the lower end of that scale, which to me would be unlikely given a current P/S of roughly 12x, the capitalization of the company amounts to $100m. Given there are aroung 123,000,000 shares outstanding, the math comes to $0.81/share.
These, in my opinion, are all fairly modest growth and multiple assumptions as companies with a competitive advantage genereally have higher multiples to accomodate the sales growth.
Thoughts?