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Ratings
Aurora Cannabis (ACB) has been quoted at a higher valuation than its peers since the beginning of this year. The stock is currently trading at a multiple of 14.5 times the sales-to-sales ratio, which is higher than the median multiple of 6.3 of its peers.
Pairs
Similar to Aurora Cannabis, a handful of his peers continued to trade at a price above the median. Companies include Canopy Growth (WEED), Cronos Group (CRON) and Tilray (TLRY). As of June 6, these shares traded at futures multiples of 19.0, 36.0 and 10.0.
When we look at the trend of Aurora Cannabis's valuation multiple in the graph above, it seems to be in the middle of its high and low range. Compared to the historical period, the stock is trading at a premium at its average of 10.9x. We need to consider periods with higher ratings after the evolution of recreational cannabis in Canada.
If we compare Aurora Cannabis to the median and past levels of its peers, the stock does not seem relatively cheap. However, Aurora Cannabis is one of the top five cannabis companies, which could lead investors to pay more.
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