CGC Valuation

Canopy Growth Corp

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1.270

+0.03(2.419%)1D

Overview
Forecast
Valuation
Earnings

CGC Relative Valuation

CGC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CGC is overvalued; if below, it's undervalued.

Historical Valuation

Canopy Growth Corp (CGC) is now in the Fair zone, suggesting that its current forward PS ratio of 1.37 is considered Fairly compared with the five-year average of -7.69. The fair price of Canopy Growth Corp (CGC) is between 0.98 to 1.64 according to relative valuation methord.

Relative Value

Fair Zone

0.98-1.64

Current Price：1.27

Fair

-2.94

Trailing

Forward

-2007.58

EV/EBITDA

Canopy Growth Corp. (CGC) has a current EV/EBITDA of -2007.58. The 5-year average EV/EBITDA is -241.44. The thresholds are as follows: Strongly Undervalued below -1486.72, Undervalued between -1486.72 and -864.08, Fairly Valued between 381.20 and -864.08, Overvalued between 381.20 and 1003.83, and Strongly Overvalued above 1003.83. The current Forward EV/EBITDA of -2007.58 falls within the Strongly Undervalued range.

-8.11

EV/EBIT

Canopy Growth Corp. (CGC) has a current EV/EBIT of -8.11. The 5-year average EV/EBIT is -13.27. The thresholds are as follows: Strongly Undervalued below -33.38, Undervalued between -33.38 and -23.32, Fairly Valued between -3.21 and -23.32, Overvalued between -3.21 and 6.84, and Strongly Overvalued above 6.84. The current Forward EV/EBIT of -8.11 falls within the Historic Trend Line -Fairly Valued range.

1.37

Canopy Growth Corp. (CGC) has a current PS of 1.37. The 5-year average PS is 6.73. The thresholds are as follows: Strongly Undervalued below -7.17, Undervalued between -7.17 and -0.22, Fairly Valued between 13.67 and -0.22, Overvalued between 13.67 and 20.62, and Strongly Overvalued above 20.62. The current Forward PS of 1.37 falls within the Historic Trend Line -Fairly Valued range.

6.14

P/OCF

Canopy Growth Corp. (CGC) has a current P/OCF of 6.14. The 5-year average P/OCF is -21.33. The thresholds are as follows: Strongly Undervalued below -90.65, Undervalued between -90.65 and -55.99, Fairly Valued between 13.33 and -55.99, Overvalued between 13.33 and 47.98, and Strongly Overvalued above 47.98. The current Forward P/OCF of 6.14 falls within the Historic Trend Line -Fairly Valued range.

-6.15

P/FCF

Canopy Growth Corp. (CGC) has a current P/FCF of -6.15. The 5-year average P/FCF is -10.45. The thresholds are as follows: Strongly Undervalued below -29.97, Undervalued between -29.97 and -20.21, Fairly Valued between -0.70 and -20.21, Overvalued between -0.70 and 9.06, and Strongly Overvalued above 9.06. The current Forward P/FCF of -6.15 falls within the Historic Trend Line -Fairly Valued range.

Canopy Growth Corp (CGC) has a current Price-to-Book (P/B) ratio of 0.74. Compared to its 3-year average P/B ratio of 1.01 , the current P/B ratio is approximately -26.55% higher. Relative to its 5-year average P/B ratio of 1.42, the current P/B ratio is about -47.86% higher. Canopy Growth Corp (CGC) has a Forward Free Cash Flow (FCF) yield of approximately -31.75%. Compared to its 3-year average FCF yield of -55.91%, the current FCF yield is approximately -43.21% lower. Relative to its 5-year average FCF yield of -38.60% , the current FCF yield is about -17.74% lower.

0.74

P/B

Median3y

1.01

Median5y

1.42

-31.75

FCF Yield

Median3y

-55.91

Median5y

-38.60

Competitors Valuation Multiple

The average P/S ratio for CGC's competitors is 1.20, providing a benchmark for relative valuation. Canopy Growth Corp Corp (CGC) exhibits a P/S ratio of 1.37, which is 14.21% above the industry average. Given its robust revenue growth of 8.94%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Village Farms International Inc

Performance Decomposition

Market capitalization of CGC decreased by 75.62% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.32 to -0.46.

The secondary factor is the Revenue Growth, contributed 8.94%to the performance.

Overall, the performance of CGC in the past 1 year is driven by P/E Change. Which is more unsustainable.

8.94%

66.21M → 72.13M

Revenue Growth

-129.98%

192.02 → -57.57

Margin Expansion

45.42%

-0.32 → -0.46

P/E Change

-75.62%