Aurora Cannabis (NYSE: ACB) is one of the most popular marijuana stocks among retail investors. The good news is that a solid rationale does exist for its rock star-like popularity. Aurora has positioned itself to become the top dog in its home market of Canada in terms of annual sales. The company has also established a top-tier international footprint and a wide-ranging product portfolio to capitalize on the next-stage of marijuana legalization in Canada.
Nonetheless, Aurora's stock sports a rather questionable valuation. Depending on which analyst estimate you go by, Aurora's shares are currently trading at 8 to 13.5 times the company's projected sales for fiscal year 2021. That's a sky-high valuation anyway you slice it, and unfortunately, Aurora probably doesn't deserve one.
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