quinlash wrote: Did not get much for feedback on any interest in comparing PS-Ratios and the reverse calculations of prices so I will just provide a quick comparison of the two companies and show how you can calculate the HEXO SP if the stock were to be trading at the same ratio.
Calculations were performed within an Excel Spreadsheet. As the numbers are stated this calculation can be confirmed with a stanard calculator.
YELLOW = Data Entry Cell
BLUE = Calculated Cells
No Highlighting = Cells where data was simply entered
Using the following Numbers for the calculations:
HEXO's Quarterly Top Line Sales Figures: | 2021 Q3 | $33,028,000 |
| 2021 Q4 - May/June/July | $53,022,000 |
| 2022 Q1 - Aug/Sept/Oct | $69,497,000 |
| 2022 Q2 - Nov/Dec/Jan | $72,014,000 |
| SharePrice (USD) | $0.5495 |
| Outstanding Shares | 382,280,000 |
| MarketCap | $210,062,860 |
| Prior 4 QTR | $227,561,000 |
| PS Ratio | 0.9231 |
The above aligns closely with the PS-Ratio as stated by Y-Charts as of Thursday's closing SharePrice (in US Dollars) therefore I can determine the formula used is correct. It is off by a small fraction therefore I need to re-confirm the sales and sharecounts to make it perfect.
HEXO PS-Ratio https://ycharts.com/companies/HEXO.TO/ps_ratio To get the Price of HEXO Shares based on the PS-Ratio of Tilray we can simply change the HEXO SP in the formula until the calculated PS Ratio of Tilray appears.
The price to enter into the formula to get the PS-Ratio of Tilray is
$2.53 USD. Using today's exchange rate of
1.2601 we would see a HEXO SP of
$3.19 Canadian. TILRAY PS-Ratio (as of Thursday = 4.248) https://ycharts.com/companies/TLRY.TO/ps_ratio Daily Exchange Rate Table https://www.bankofcanada.ca/rates/exchange/daily-exchange-rates/ How to Calculate PS-Ratio https://www.investopedia.com/terms/p/price-to-salesratio.asp NOTE: The PS-Ratio of Canopy would also be a decent comparison IMHO. The average PS-Ratio of HEXO Corp is 40 with a all time high of 244 during the peak of the Canadian Cannabis boom.
These numbers are dynmanic therefore if the SP of Tilray goes up so will Tilray's PS-Ratio as well as the comparible SP of HEXO Corp however it is not linear so having a spreadsheet set up is a handy thing to do if you are trying to track the two companies by comparing prices on sales ratios.
If I get some free time over the weekend I may go back to reconfirm the numbers to get this exact but it is an interesting topic to play around with for those doing their research.