Here is the list of cannabis stocks and their respective price-to-book ratio compared across from the complete list of cannabis stocks. Price-to-Book ratio is a metric to help you determine if a cannabis stocks’ value is below that of its respective assets. If a company has a certain asset level but, market capitalization is lower than these assets, the respective cannabis stock is said to be below value.
Book value represents the amount a shareholder would receive if the company were to be liquidated. This would be total assets less total liabilities. Usually, an assets book value is less than its market value. This is because liquidation usually happens at levels below the market value. Firms net book value less its costs of carrying for accounting purposes. This is done via depreciation and amortization.
Having a stock with a valuation below its total equity level could be a potential buy signal. The lack of a company’s total equity not being realized by the market may be an indication that a company is underutilizing its equity. And, this could mean the market simply has not recognized this potential yet.
At the same time, with smaller cannabis stocks, getting consistent input from the market with companies that have yet to consistently grow and report would potentially have a company’s stock be subjected to pressure from selling. Consistency is key.
| Name | Symbol | Cash On Hand | Q3 Total Equity | Market Cap | Price/Cash Ratio | Price/Book Ratio | |
|---|---|---|---|---|---|---|---|
| 1933 INDUSTRIES INC | TGIFF | $1,300,000 | $2,900,000 | $6,687,892 | 5.14 | 2.31 | |
| 1CM | MILFF | $2,300,000 | $15,900,000 | $160,509,488 | 69.79 | 10.09 | |
| 4Front Ventures | FFNTF | $5,400,000 | $7,800,000 | $164,675,216 | 30.50 | 21.11 | |
| Akanda | AKAN | $0 | $0 | $2,509,962 | |||
| Aleafia Holding | ALEAF | $0 | $0 | $6,089,301 | |||
| Ascend Wellness | AAWH | $68,000,000 | $166,300,000 | $236,616,480 | 3.48 | 1.42 | |
| Aurora Cannabis Inc. | ACB | $119,200,000 | $383,400,000 | $199,346,240 | 1.67 | 0.52 | |
| Auxly Cannabis | CBWTF | $6,600,000 | $50,600,000 | $13,276,632 | 2.01 | 0.26 | |
| Avant Brands | AVTBF | $1,900,000 | $41,500,000 | $37,644,508 | 19.81 | 0.91 | |
| AYR Wellness | AYRWF | $60,000,000 | $615,500,000 | $205,107,680 | 3.42 | 0.33 | |
| Ayurcann | AYURF | $0 | $0 | $3,458,708 | |||
| Bhang | BHNGF | $0 | $0 | $3,558,300 | |||
| Blueberries Medical | BBRRF | $600,000 | $500,000 | $4,147,870 | 6.91 | 8.30 | |
| Body & Mind | BMMJ | $2,700,000 | $1,600,000 | $14,663,699 | 5.43 | 9.16 | |
| C21 Investments | CXXIF | $1,800,000 | $33,800,000 | $42,107,100 | 23.39 | 1.25 | |
| Cannabis Sativa | CBDS | $100,000 | $1,000,000 | $1,101,062 | 11.01 | 1.10 | |
| Cannara Biotech | LOVFF | $3,000,000 | $55,200,000 | $66,723,344 | 22.24 | 1.21 | |
| Canopy Growth | CGC | $432,500,000 | $639,400,000 | $668,355,904 | 1.55 | 1.05 | |
| Cansortium | CNTMF | $8,800,000 | $18,200,000 | $26,126,046 | 2.97 | 1.44 | |
| Clever leaves | CLVR | $5,100,000 | $33,900,000 | $4,953,715 | 0.97 | 0.15 | |
| CLS Holdings | CLSH | $900,000 | -$9,500,000 | $6,166,164 | 6.85 | -0.65 | |
| Columbia Care | CCHWF | $40,100,000 | $154,800,000 | $489,060,512 | 12.20 | 3.16 | |
| Craftport Cannabis | BHHKF | $0 | $0 | $2,014,578 | |||
| Cresco Labs | CRLBF | $73,200,000 | $546,900,000 | $828,520,896 | 11.32 | 1.51 | |
| Cronos Group | CRON | $840,900,000 | $1,136,600,000 | $838,395,776 | 1.00 | 0.74 | |
| Curaleaf Holdings | CURLF | $85,000,000 | $1,304,100,000 | $3,316,015,104 | 39.01 | 2.54 | |
| CV Sciences | CVSI | $1,700,000 | $3,900,000 | $7,421,039 | 4.37 | 1.90 | |
| Decibel | DBCCF | $2,500,000 | $35,300,000 | $128,649,728 | 51.46 | 3.64 | |
| Delivra Health Brands | DHBUF | $0 | $0 | $4,614,900 | |||
| Delta 9 Cannabis | DLTNF | $2,200,000 | $2,300,000 | $6,450,451 | 2.93 | 2.80 | |
| Diego Pellicer | DPWW | $600,000 | -$10,000,000 | $26,133 | 0.04 | -0.00 | |
| ENDEXX | EDXC | $0 | $0 | $24,052,006 | |||
| Entourage Health Corp | ETRGF | $11,700,000 | $0 | $4,506,975 | 0.39 | ||
| Fiore Cannabis | FIORF | $10,000 | -$800,000 | $197 | 0.02 | -0.00 | |
| Fire & Flower Holdings | FFLWF | $0 | $0 | $5,418,480 | |||
| Flora Growth | FLGC | $1,800,000 | $10,200,000 | $22,688,726 | 12.60 | 2.22 | |
| Flowr Corporation | FLWPF | $0 | $0 | $8,038,940 | |||
| Gaby | GABLF | $0 | $0 | $2,681,601 | |||
| Glass House Brands | GLASF | $19,700,000 | $159,500,000 | $338,944,032 | 17.21 | 2.13 | |
| Gold Flora Corp | GRAM | $60,440,000 | $122,040,000 | $0 | 0.00 | 0.00 | |
| Goodness Growth | GDNSF | $11,300,000 | -$7,900,000 | $27,192,718 | 2.41 | -3.44 | |
| Green Thumb Industries | GTBIF | $149,000,000 | $1,705,800,000 | $2,561,224,192 | 17.19 | 1.50 | |
| Grown Rogue | GRUSF | $3,800,000 | $10,100,000 | $47,320,740 | 12.45 | 4.69 | |
| Heritage Cannabis | HERTF | $3,600,000 | $26,500,000 | $8,416,430 | 2.34 | 0.32 | |
| High Tide | HITI | $16,700,000 | $121,300,000 | $120,161,680 | 7.20 | 0.99 | |
| iAnthus Capital Holdings | ITHUF | $10,100,000 | -$24,900,000 | $165,214,512 | 16.36 | -6.64 | |
| IM Cannabis Corp | IMCC | $1,000,000 | $16,300,000 | $10,581,339 | 10.58 | 0.65 | |
| Indiva Limited | NDVAF | $2,000,000 | $900,000 | $4,763,323 | 2.38 | 5.29 | |
| InterCure | INCR | $27,700,000 | -$120,700,000 | $76,562,136 | 2.76 | 0.54 | |
| Item 9 Labs | INLB | $200,000 | $52,600,000 | $1,688,973 | 8.44 | 0.03 | |
| Jushi Holdings | JUSHF | $26,800,000 | $27,300,000 | $145,311,056 | 5.42 | 5.32 | |
| KAYA Holdings | KAYS | $100,000 | -$18,100,000 | $1,328,150 | 13.28 | -0.07 | |
| Khiron Life Sciences | KHRNF | $0 | $0 | $7,005,398 | |||
| Kona Gold Holdings | KGKG | $100,000 | -$5,200,000 | $2,753,928 | 27.54 | -0.53 | |
| LEEF Brands | LEEF | $2,900,000 | $11,100,000 | $29,614,998 | 10.21 | 2.67 | |
| Lifeist Wellness | LFSWF | $1,700,000 | $6,900,000 | $7,510,148 | 4.42 | 1.09 | |
| Lotus Ventures | LTTSF | $10,000 | $7,200,000 | $2,322,281 | 232.23 | 0.32 | |
| Lowell Farms | LOWLF | $8,500,000 | $44,100,000 | $3,237,794 | 0.38 | 0.07 | |
| MariMed | MRMD | $14,700,000 | $102,800,000 | $178,003,584 | 12.11 | 1.73 | |
| MediPharm Labs | MEDIF | $11,500,000 | $45,900,000 | $24,762,630 | 2.15 | 0.54 | |
| MedMen Enterprises | MMNFF | $0 | $0 | $35,376,176 | |||
| New Leaf Ventures | NLVVF | $0 | $0 | $2,221,664 | |||
| Nextleaf Solutions | OILFF | $0 | $0 | $6,991,212 | |||
| Nova Cannabis | NVACF | $4,200,000 | $36,400,000 | $24,135,086 | 5.75 | 0.66 | |
| Organigram Holdings Inc. | OGI | $38,800,000 | $222,400,000 | $126,382,968 | 3.26 | 0.57 | |
| PharmaCielo | PCLOF | $100,000 | $2,700,000 | $22,039,584 | 220.40 | 8.16 | |
| Planet 13 Holdings | PLNHF | $40,500,000 | $182,200,000 | $222,248,000 | 5.49 | 1.22 | |
| Radiant Technologies | RDDTF | $0 | $0 | $2,007,501 | |||
| Red White & Bloom | RWBYF | $2,900,000 | $3,700,000 | $20,585,700 | 7.10 | 5.56 | |
| Rubicon Organics | ROMJF | $7,000,000 | $28,700,000 | $19,374,500 | 2.77 | 0.68 | |
| Schwazze | SHWZ | $20,300,000 | $149,000,000 | $74,211,264 | 3.66 | 0.50 | |
| SLANG Worldwide | SLGWF | $4,600,000 | $23,200,000 | $7,207,616 | 1.57 | 0.31 | |
| StateHouse | STHZF | $3,300,000 | -$122,800,000 | $11,100,990 | 3.36 | -0.09 | |
| STEM Holdings | STMH | $1,700,000 | $11,200,000 | $3,366,528 | 1.98 | 0.30 | |
| Sugarbud Holdings | SBUDF | $0 | $0 | $529,966 | |||
| Sundial Growers Inc. | SNDL | $160,000,000 | $1,002,400,000 | $507,975,008 | 3.17 | 0.51 | |
| TerrAscend | TSNDF | $30,800,000 | $295,600,000 | $763,224,576 | 24.78 | 2.58 | |
| Tilray | TLRY | $408,200,000 | $3,330,000,000 | $2,175,626,240 | 5.33 | 0.65 | |
| TILT Holdings | TLLTF | $2,800,000 | $91,400,000 | $19,915,068 | 7.11 | 0.22 | |
| Trees Corp | CANN | $600,000 | $2,500,000 | $14,773,668 | 24.62 | 5.91 | |
| Trulieve Cannabis | TCNNF | $152,400,000 | $1,462,000,000 | $1,166,082,560 | 7.65 | 0.80 | |
| Unrivaled | UNRV | $600,000 | -$33,500,000 | $18,925,834 | 31.54 | -0.56 | |
| Verano | VRNOF | $102,600,000 | $1,325,900,000 | $1,747,743,232 | 17.03 | 1.32 | |
| Veritas Farms | VFRM | $100,000 | -$1,300,000 | $1,727,449 | 17.27 | -1.33 | |
| Vext Sciences | VEXTF | $4,300,000 | $72,800,000 | $15,198,540 | 3.53 | 0.21 | |
| Vibe Growth | VIBEF | $0 | $0 | $3,673,074 | |||
| Village Farms | VFF | $26,700,000 | $342,800,000 | $100,317,496 | 3.76 | 0.29 | |
| West Island Brands | WIBFF | $0 | $0 | $1,480,124 |
Methodology For Determining Price-To-Book Ratio
This chart above is the Price to Book ratio for the S&P500. Use this as a metric for comparison. Most cannabis stocks are trading below 1; they are trading below their total equity valuations. Numbers closer to the 3.92 above would mean that cannabis stocks are price closer to where the broader market. But, cannabis stocks are also companies that are intensive with capital.
For ease with the information I already have, I used the assets in the format that I have for Total Equity from the Complete List of Cannabis Stocks page. Market Capitalization is divided by the Total Equity (Multiplied by 1,000,000). This gives you the ratio of total equity to market capitalization.
Undervalued Companies: Price-To-Book Ratio below 1
Any number below 1 may be considered undervalued. Those companies significantly below 1 could be considered significantly undervalued. It may be that since a company has assets well in excess of its market capitalization, management could sell all of the assets and simply return the proceeds from the sale of these assets to the shareholders.
At the same time, another company could acquire the undervalued company because of the upside potential.
It is also important to note that a company whose stock is below 1 does not automatically place the company in the “Undervalued” column. It may be that there are many factors that would push the stock below its total equity level. This is up to an analyst to determine the rationale as to why a company is below 1 in the price-to-book value. It may be that intrinsic value is negative simply because the company is losing money on a regular basis.
Overvalued companies: Price-To-Book Ratio above 1
One important note is that any company whose price-to-book ratio is above 1 may not necessarily be considered overvalued. After calculating total equity, there is also intrinsic value that could potentially drive the stock higher based upon revenue growth and profit growth driven by improving margins.
Here is my latest video on the Price-To-Book & Price-To-Cash ratios:
Thank you so much for this overview. I can se that some of the companies on the list – such af Intercure – have negative price to book ratio. Could you please explain if it is a good or bad for Intercure? I have been dollar cost averaging for a year now and I hoped it will move up after Q2 earnings annoncement – but it didn’t. Buy the way, I have been following you for a year on YT. Great stuff!
INCR never moderated its own multiyear downtrend like the sector leaders had begun doing over the last several months. You should be focusing instead on diversification within the top listings that DH has been modifying over time.
@alcann Negative price to book means that they have negative total equity. Negative total equity means that their assets are smaller than their liabilities – too much debt. More than likely, they also have negative net earnings on a quarterly basis, and they take on accumulating debt every quarter to keep the dream alive.
This is problematic, but not the end of the world. A company can refinance its debt and hopefully get better terms on its debt and pay less in borrowing costs. But, more than likely a company is also going to do a stock issue and raise some necessary capital. While this will fill the pockets of the company this dilutes current stock ownership. However, without that extra cash to move forward, the venture is a losing proposition and therefore a necessary evil.
Look around for companies with a price to book that is just around 1.00. This means the company’s market capitalization is less than, or equal to, its total equity. This basically means the venture has no appreciated value for its future.
That metric, however, is not panacea. If I company has total equity of, say, $100M and their market capitalization is the same, there may be something going on such as every quarter they have net earnings that are negative. So, it could be a cash burn situation where the company has no real future despite the equity. The market may actually be overvaluing the company in that situation.
You have to balance what data is there.
@alcann I just checked. InterCure INCR has a price to book of 0.54 not negative. The data provider used the wrong info that I used for the sheet. I have updated it in the spreadsheet.
I will do a video on these guys this afternoon and get it up to the channel later this evening.
Thank you so much, Mark and D.H.. I am deversified, but Intercure is my largest position, as I’ve been averaging down since December. My European trading platform is showing the P/B ratio of 0,59, Morning Star 0,56, so I was quite suprised when I saw the negative one on your list. I am looking forward to watching the video! I am a beginner investor, still learning. And your channel is the best out there. Thank you.
9/1/2023:
$VFF. Village Farm International price target analysisI notice the market cap is way below revenues and net equity. Therefore, I have devised the following method to come up with my price target:Methodology to calculate target share price:Step 1: Check the liquidity health of the company. If Cash/market cap ratio is more than 10%, then strong liquidityStep 2: Calculate the average of Market cap/rev ratio and Market cap/net equity ratioStep 3: Use market cap to divide the result of step 2. Get market cap targetStep 4: Target market cap/ current market cap * current share price = target share priceImplementation of Methodology:Step 1 Strong liquidityStep 2: 0.48Step 3: 205.29 mil USDStep 4: $1.86 price target (the most conservative estimate based purely on financial health of the company)
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9/11/2023 – 9/12/2023:
My market research result (primarily based on personal accounts on Reddit): $CGC has bad product quality, toxic and repressive work culture, and it does not care about product quality. $VFF cannabis products are expensive but high quality, worth it. Tilray has cheap but decent products, suitable for the masses. Look at their product websites and gauge their sincerity and competency in product designs and marketing effectiveness (succinct, direct, easy to find, aesthetically pleasant with high taste). Google “Reddit reviews on products of each company or its brand”.Above analysis is on a morality-product level. On a price-valuation level, $VFF is clearly the winner for its market cap is way below its superior net equity and TTM revenues. On a vision-innovation level, Tilray is the winner for its beer acquisition. Marijuana beer is a fantastic idea. I therefore hold $VFF (40.62% of portfolio), $TLRY (33.21%), and $MSOX (26.23%). I hold 0 $CGC, for it will go bankrupted. Vision and morality are the first and foremost thing to look at when investing in an asset.