RE:AURORA IS PROFITABLE And nobody else is MRGreenthumb123 wrote: # 1 Cannibus company right now is is and we’re really undervalued should be at 16-20$
Well, this would most definitely appear to be the case if you was measuring the top weed companies based upon their top-line sales revenue, as per a post I just wrote on the Tilray boards as follows:
longonMJ wrote: Yes, it would most definitely appear that Aurora got the short end of the straw when it came to valuation of the big 3 MJ companies.
Looks like Aurora got taken behind the woodshed and got the living daylingts whupped out of itself for missing on their financials. Yet, if you take a closer look at their financials, it would appear that they have by far the best numbers out of the three. Especially when it comes to the key top line sales revenues for the September 30 quarter end.
Based upon today's closing price it looks like the share price to sales revenue ratios for all 3 companies are as follows: Tilray with quarterly sales of $10M and a current market cap of $9.53B has a price to sales ration of 953. Canopy with sequentially decreasing quarterly sales of $23.3M and a market cap of $15.23B for a price to sales ration of 653. And pulling up at the back of the pack would be Aurora with quarterly sales increasing by 260% YOY to $29.6M (includes only a partial portion of the quarter for Medreleaf) with a market cap of $7.86B for a price to sales ratio of only 265.
Looks like Aurora's late entry onto the big board and subsequent lack of investor name recognition south of the border and with global foreign investors is definitely keeping its share price down relative to the other 2 who were first to market in terms of the big board. What the above price to sales ratio indicates is that if Tilray and Canopy were given the same valuation for their top line sales as Aurora has been given by the marketplace, Tilray shares would be trading at only $28.50 per share while Canopy would be trading at only $18.30 per share.
Doesn't take a rocket scientist to figure out which one of the big 3 MJ companies would appear to be the most undervalued and therefore should have the most upside going forward, especially considering their growth potential with everthing that they've got lined up.
On a relative basis using this key sales revenue metric, Aurora would most definitely appear to be undervalued as its share price would be sitting at $20.10 based upon giving them the same valuation that Canopy received for their sales, or at $29.30 if it was based upon Tilray's valuation given to their sales.