IM Cannabis Valuation

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

IMCC (CA$3.74) is trading below our estimate of [[fair value]] (CA$34.58)

Is IMCC 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 IMCC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IMCC (CA$3.74) is trading below our estimate of fair value (CA$34.58)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for IMCC. This is calculated by dividing IMCC's market cap by their current revenue.
What is IMCC's PS Ratio?
PS Ratio	0.2x
Sales	CA$51.39m
Market Cap	CA$11.13m

IMCC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.4x
Enterprise Value/EBITDA	-2.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for IMCC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.5x
FLWR.H Flowr	0.9x	n/a	CA$10.7m
STHZ StateHouse Holdings	0.05x	n/a	CA$7.7m
CTX Crescita Therapeutics	0.6x	n/a	CA$11.1m
CHAL Chalice Brands	0.6x	n/a	CA$19.0m
IMCC IM Cannabis	0.2x	24.8%	CA$11.1m

Price-To-Sales vs Peers: IMCC is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (0.3x).

Price to Sales Ratio vs Industry

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

23 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.7x	10.7%
IMCC IM Cannabis	0.2x	24.8%	US$7.96m
AYR.A Ayr Wellness	0.2x	2.6%	US$82.27m
ACRG.A.U Acreage Holdings	0.08x	n/a	US$26.82m

23 Companies		Estimated Growth	Market Cap
Industry Avg.	0.7x	53.4%
IMCC IM Cannabis	0.2x	86.6%	US$7.96m

No more companies

Price-To-Sales vs Industry: IMCC is good value based on its Price-To-Sales Ratio (0.2x) compared to the Canadian Pharmaceuticals industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is IMCC'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.

IMCC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.2x
Fair PS Ratio	1.1x

Price-To-Sales vs Fair Ratio: IMCC is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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