Viridian Chart Of The Week: A Different Perspective On Valuing Distressed Cannabis Equities – Option Based Valuation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 18 2024
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Source: Benzinga
Valuation Techniques for Cannabis Companies: Analysts utilize various methods such as Discounted Cash Flow Analysis and option valuation to assess cannabis companies, particularly in distress where asset values may be lower than debt. The Black-Scholes model is employed for these valuations, considering factors like volatility and the weighted average maturity of debt.
Viridian Cannabis Deal Tracker Insights: The Viridian Cannabis Deal Tracker monitors capital raises and M&A activity in the cannabis sector, providing critical market intelligence that helps stakeholders make informed decisions. Since 2015, it has tracked over 2,500 capital raises and 1,000 M&A transactions, totaling more than $50 billion in value.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
