RE:Is this accurate ?Awesome analysis. I agree; HEXO is the best weed stock to buy now for the most gains. thanks for making the community aware.
HARJAY wrote: Can someone who is better than me in math say if what this person posted on another site is accurate ??
Thanks
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update on valuations....
cronos 33x sales ( enterprise value / latest quarter sales annualized)
cgc 23x
acb 8.5x
apha 8x ( 142m sales last quarter but 82m were low margin german wholesale so used 1/3 of those to get total sales of 89m for valuation purposes for the quarter vs the reported 142m)
ogi 5.7x
hexo 3.7x !!!!
Hexo is definitely undervalued relative to its peers....especially acb. hexo much better balance sheet than acb and ogi too , better sales growth at 20-30% / quarter vs contraction for both acb and ogi...and yet trades at over a 50% discount to acb and a 35% discount to ogi.
yes apha balance sheet is good but no better than hexo and sales growth is no better as well , yet apha trades over twice the multiple....yes apha has positive ebita, but hexo will be there very soon in first half 2021 ( which is aug 1 - Jan 31) so we are 2/3s of the way through first half so could very well be positive ebitda right now.....
bottom line is HEXO is the best value play of all the Cdn LPs....it isnt even close