Cresco Labs Inc.

CNSX:CL Stock Report

Market Cap: CA$745.0m

Cresco Labs Valuation

Is CL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CL (CA$1.67) is trading below our estimate of fair value (CA$4.59)

Significantly Below Fair Value: CL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CL?

Key metric: As CL is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CL. This is calculated by dividing CL's market cap by their current revenue.
What is CL's PS Ratio?
PS Ratio0.6x
SalesUS$726.35m
Market CapUS$532.84m

Price to Sales Ratio vs Peers

How does CL's PS Ratio compare to its peers?

The above table shows the PS ratio for CL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.5x
VRNO Verano Holdings
0.7x5.0%CA$850.9m
CRON Cronos Group
6.9x4.9%CA$1.1b
GUD Knight Therapeutics
1.5x5.9%CA$519.1m
TRUL Trulieve Cannabis
1x6.0%CA$1.6b
CL Cresco Labs
0.6x1.9%CA$745.0m

Price-To-Sales vs Peers: CL is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (2.5x).

Price to Sales Ratio vs Industry

How does CL's PS Ratio compare vs other companies in the CA Pharmaceuticals Industry?

23 CompaniesPrice / SalesEstimated GrowthMarket Cap
AYR.A Ayr Wellness
0.2x2.6%US$82.27m
ACRG.A.U Acreage Holdings
0.08xn/aUS$26.82m
MRV Nuvo Pharmaceuticals
0.2xn/aUS$11.21m
IMCC IM Cannabis
0.2x24.8%US$7.96m
CL 0.6xIndustry Avg. 0.7xNo. of Companies23PS012345+
23 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CL is good value based on its Price-To-Sales Ratio (0.6x) compared to the Canadian Pharmaceuticals industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is CL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio1x

Price-To-Sales vs Fair Ratio: CL is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$1.67
CA$3.76
+125.3%
28.2%CA$6.00CA$2.76n/a7
Nov ’25CA$2.14
CA$4.63
+116.6%
15.7%CA$5.99CA$3.80n/a7
Oct ’25CA$2.22
CA$4.61
+107.6%
15.1%CA$5.93CA$3.71n/a8
Sep ’25CA$2.10
CA$6.30
+200.1%
75.4%CA$19.61CA$3.74n/a9
Aug ’25CA$2.20
CA$6.41
+191.5%
74.7%CA$19.86CA$3.81n/a9
Jul ’25CA$2.14
CA$6.67
+211.6%
73.7%CA$19.57CA$4.00n/a8
Jun ’25CA$2.62
CA$6.37
+143.2%
74.4%CA$19.66CA$3.78n/a9
May ’25CA$2.98
CA$5.92
+98.7%
71.7%CA$17.67CA$3.26n/a9
Apr ’25CA$3.04
CA$5.43
+78.7%
52.5%CA$13.12CA$3.27n/a9
Mar ’25CA$2.37
CA$5.02
+112.0%
58.5%CA$13.02CA$2.65n/a9
Feb ’25CA$3.14
CA$4.98
+58.6%
58.6%CA$12.93CA$2.63n/a9
Jan ’25CA$1.79
CA$4.99
+179.0%
59.5%CA$13.14CA$2.68n/a9
Dec ’24CA$2.40
CA$4.99
+108.1%
59.5%CA$13.14CA$2.68n/a9
Nov ’24CA$1.65
CA$5.30
+221.2%
80.8%CA$17.12CA$2.31CA$2.149
Oct ’24CA$2.72
CA$5.21
+91.6%
80.4%CA$16.77CA$2.26CA$2.229
Sep ’24CA$2.30
CA$4.83
+109.8%
90.3%CA$16.80CA$1.51CA$2.109
Aug ’24CA$2.11
CA$5.19
+146.1%
80.1%CA$16.55CA$2.02CA$2.209
Jul ’24CA$1.98
CA$5.15
+160.2%
79.7%CA$16.38CA$2.17CA$2.149
Jun ’24CA$2.24
CA$3.87
+73.1%
30.1%CA$5.73CA$2.24CA$2.628
May ’24CA$2.09
CA$5.94
+184.4%
76.4%CA$18.13CA$2.22CA$2.989
Apr ’24CA$2.17
CA$6.47
+198.3%
66.4%CA$18.09CA$2.21CA$3.0411
Mar ’24CA$2.37
CA$8.49
+258.1%
43.7%CA$18.17CA$2.75CA$2.3712
Feb ’24CA$2.46
CA$8.86
+260.1%
37.9%CA$17.91CA$4.77CA$3.1412
Jan ’24CA$2.45
CA$9.16
+274.0%
34.4%CA$17.98CA$4.79CA$1.7912
Dec ’23CA$4.79
CA$9.16
+91.3%
34.4%CA$17.98CA$4.79CA$2.4012
Nov ’23CA$4.45
CA$10.63
+138.9%
46.4%CA$24.29CA$4.71CA$1.6512

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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