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Zenabis Global Inc. T.ZENA

We are a diverse, passionate team of doctors, scientists, researchers, growers, educators, and advocates who came together with the goal of increasing access to safe, high quality cannabis for medical patients and recreational consumers. Our four facilities are located coast-to-coast across Canada in Delta and Langley, British Columbia; Atholville, New Brunswick; and Stellarton, Nova Scotia. Zenabis currently owns 3.5 million square feet of facility space.


TSX:ZENA - Post by User

Comment by quinlashon Apr 17, 2021 10:23pm
82 Views
Post# 33018159

RE:Price to Sales Ratio (worth a look...)

RE:Price to Sales Ratio (worth a look...)Made a small type-o below so I will fix it here and add another point.

The PS-Ratio is one of the few ways you can compare the performance and relative price (high or low within a sector) when the companies within that sector have yet to turn cash-flow positive.  This is indeed the case in the Cannabis Sector as even the most expensive shares available (based on PS-Ratio) is Canopy Growth and it has yet to turn cash flow positive.

On a brighter note, Zenabis is EBITDA Positive (on an adjusted basis) and HEXO just made the same mile stone on it's last report..... poor old Canopy Growth haven't done as well, even on an adjusted basis, neither has Aurora... etc etc..

Together Zenabis and HEXO stand a much better chance of turning cash flow positive in a much shorter time..

IMHO... Don't forget to vote on the deal... mine will be  " OH HELL YA' " ... assuming that is an option :)

Enjoy your evening

Q





quinlash wrote:

Price to Sales ratios provide investors with a means to compare the price paid for SHARES relative to the sales numbers being brought in by the company.  They also allow investors to compare companies within the same sector to determine which are priced lower per share, again based on the sales of the companies being compared.

The formulas are not difficult to build in a spreadsheet and can be formatted in such a way that investors can work out the resulting shareprice if the PS-Ratio on one company were to go up to meet the PS-Ratio of another company or if it were to hit historical highs or specific targets etc.

The historical high PS-Ratio on HEXO shares was 244 while Tilray hit 650.  The following link will provide quick access to current and historical PS-Ration numbers for HEXO and some comparison companies

HEXO Price to Sales Ratio Data
https://ycharts.com/companies/HEXO.TO/ps_ratio

As of close Friday HEXO PS-Ratio is 6.52, while Zenabis a meger .92, Canopy at 28

You can reverse calculate the shareprice of HEXO shares if the price should ever hit a PS-Ratio of 244 again.  You can take that price and then multiple it by .01772 to see what the resulting value of today's Zena's shares would be.

Weekends are great for research

GLTA

Q



 



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