ACRGF - 4 Cannabis Stocks Valued at Less Than 2 Times 2020 Sales
For years, the words "value" and "cannabis" pretty much didn't belong in the same sentence. That's because marijuana stock valuations were going through the roof on nothing more than promises of industrywide growth once Canada, and eventually the U.S., legalized the drug.
Today, however, it's a much different story. With Canada having legalized recreational pot, and two-thirds of all U.S. states giving the green light to medical marijuana (11 of which also allow adult-use cannabis), operating results actually matter. Since being placed under the same microscope as time-tested businesses and industries, marijuana stocks have not fared well. Most are still losing money on an operating basis, and North America is contending with a slew of supply and tax concerns that are adversely impacting the industry.
But there are a number of ways to measure value beyond just the forward price-to-earnings ratio.