Valuations: Selecting an operative time frame

In any valuation exercise, including hemp and cannabis companies, there is always some discussion on exactly when in time – past, present or future – the EBITDA is examined.

As exotic as hemp and cannabis companies may seem to traditional investors, valuations of these companies still follow traditional performance indicators such as EBITDA, OPEX and COGs.

Moreover, hemp and cannabis companies are purchased, sold or invested in on a “multiple of EBITDA” basis. It’s a tried-and-true method of achieving a consensus price between sellers and acquirers.

Read Now

Sign inJoin for instant access