Verano Holdings Corp.

NEOE:VRNO Stock Report

Market Cap: CA$850.9m

Verano Holdings Valuation

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

Below Fair Value: VRNO (CA$2.32) is trading below our estimate of fair value (CA$15.27)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for VRNO. This is calculated by dividing VRNO's market cap by their current revenue.
What is VRNO's PS Ratio?
PS Ratio0.7x
SalesUS$897.57m
Market CapUS$608.65m

Price to Sales Ratio vs Peers

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

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

Price-To-Sales vs Peers: VRNO is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (2.5x).

Price to Sales Ratio vs Industry

How does VRNO'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
VRNO 0.7xIndustry Avg. 0.7xNo. of Companies23PS012345+
23 CompaniesEstimated GrowthMarket Cap
No more companies

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

Price to Sales Ratio vs Fair Ratio

What is VRNO'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.

VRNO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: VRNO is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

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 VRNO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$2.32
CA$9.25
+298.6%
30.9%CA$13.14CA$4.81n/a8
Nov ’25CA$4.66
CA$12.88
+176.5%
19.3%CA$16.94CA$9.10n/a8
Oct ’25CA$4.51
CA$12.74
+182.5%
18.4%CA$16.44CA$8.83n/a9
Sep ’25CA$4.44
CA$12.77
+187.7%
19.2%CA$16.94CA$8.80n/a9
Aug ’25CA$5.40
CA$13.13
+143.2%
18.8%CA$17.46CA$9.11n/a9
Jul ’25CA$4.91
CA$13.31
+171.1%
18.7%CA$17.26CA$9.01n/a8
Jun ’25CA$5.61
CA$12.98
+131.4%
18.9%CA$17.17CA$8.96n/a9
May ’25CA$7.04
CA$12.73
+80.8%
15.5%CA$16.63CA$9.13n/a9
Apr ’25CA$8.55
CA$12.64
+47.9%
16.0%CA$16.68CA$9.03n/a9
Mar ’25CA$6.84
CA$12.46
+82.1%
17.8%CA$16.48CA$7.87n/a9
Feb ’25CA$8.80
CA$11.85
+34.7%
15.0%CA$13.92CA$7.78n/a8
Jan ’25CA$5.88
CA$11.67
+98.5%
16.7%CA$13.99CA$7.96n/a8
Dec ’24CA$5.78
CA$11.67
+102.1%
16.7%CA$13.99CA$7.96n/a8
Nov ’24CA$4.54
CA$12.52
+175.9%
17.8%CA$15.45CA$8.25CA$4.668
Oct ’24CA$6.15
CA$12.33
+100.4%
17.9%CA$15.10CA$8.07CA$4.518
Sep ’24CA$5.15
CA$11.99
+132.8%
18.7%CA$14.98CA$8.00CA$4.447
Aug ’24CA$3.88
CA$12.51
+222.3%
21.7%CA$16.90CA$7.87CA$5.407
Jul ’24CA$3.90
CA$12.19
+212.5%
23.3%CA$16.63CA$7.81CA$4.916
Jun ’24CA$3.89
CA$13.85
+256.1%
31.2%CA$22.11CA$8.00CA$5.617
May ’24CA$4.06
CA$13.84
+240.9%
31.4%CA$22.19CA$8.01CA$7.047
Apr ’24CA$3.87
CA$13.66
+253.1%
27.7%CA$22.14CA$7.99CA$8.5510
Mar ’24CA$3.90
CA$15.96
+309.2%
37.7%CA$26.51CA$5.93CA$6.8411
Feb ’24CA$4.15
CA$16.92
+307.6%
33.8%CA$26.20CA$5.86CA$8.8010
Jan ’24CA$4.30
CA$17.54
+308.0%
32.8%CA$26.81CA$6.00CA$5.8810
Dec ’23CA$7.20
CA$17.33
+140.7%
31.2%CA$26.30CA$7.08CA$5.7810
Nov ’23CA$7.20
CA$19.21
+166.8%
38.8%CA$31.22CA$6.91CA$4.5410

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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