Aurora Cannabis Inc.

TSX:ACB Stock Report

Market Cap: CA$319.7m

Aurora Cannabis Valuation

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

Below Fair Value: ACB (CA$5.95) is trading below our estimate of fair value (CA$52.51)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for ACB. This is calculated by dividing ACB's market cap by their current revenue.
What is ACB's PS Ratio?
PS Ratio1.1x
SalesCA$296.99m
Market CapCA$319.73m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for ACB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.5x
CPH Cipher Pharmaceuticals
10.2x18.8%CA$374.9m
GUD Knight Therapeutics
1.5x5.9%CA$519.1m
TSND TerrAscend
0.7x9.9%CA$409.1m
OGI Organigram Holdings
1.5x16.5%CA$220.4m
ACB Aurora Cannabis
1.1x11.8%CA$319.7m

Price-To-Sales vs Peers: ACB is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (3.5x).

Price to Sales Ratio vs Industry

How does ACB'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$7.97m
ACB 1.1xIndustry Avg. 0.7xNo. of Companies23PS012345+
23 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ACB is expensive based on its Price-To-Sales Ratio (1.1x) compared to the Canadian Pharmaceuticals industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is ACB'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.

ACB PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: ACB is good value based on its Price-To-Sales Ratio (1.1x) 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 ACB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$5.95
CA$9.20
+54.6%
12.7%CA$11.00CA$8.00n/a5
Nov ’25CA$7.75
CA$9.92
+28.0%
17.1%CA$13.00CA$8.00n/a6
Oct ’25CA$7.28
CA$9.92
+36.2%
17.1%CA$13.00CA$8.00n/a6
Sep ’25CA$8.17
CA$9.21
+12.7%
25.4%CA$13.00CA$4.95n/a7
Aug ’25CA$8.38
CA$8.78
+4.8%
27.3%CA$13.00CA$4.95n/a7
Jul ’25CA$6.32
CA$8.43
+33.4%
28.8%CA$13.00CA$4.95n/a8
Jun ’25CA$8.42
CA$9.68
+15.0%
54.3%CA$22.50CA$4.95n/a8
May ’25CA$10.13
CA$9.68
-4.4%
54.3%CA$22.50CA$4.95n/a8
Apr ’25CA$5.81
CA$9.68
+66.6%
54.3%CA$22.50CA$4.95n/a8
Mar ’25CA$4.31
CA$9.68
+124.6%
54.3%CA$22.50CA$4.95n/a8
Feb ’25CA$5.50
CA$11.08
+101.4%
53.4%CA$26.00CA$6.10n/a8
Jan ’25CA$6.50
CA$10.62
+63.4%
53.9%CA$26.00CA$6.10n/a9
Dec ’24CA$6.30
CA$10.62
+68.6%
53.9%CA$26.00CA$6.10n/a9
Nov ’24CA$6.40
CA$9.61
+50.2%
27.0%CA$15.00CA$6.90CA$7.758
Oct ’24CA$7.90
CA$9.61
+21.7%
27.0%CA$15.00CA$6.90CA$7.288
Sep ’24CA$6.50
CA$12.99
+99.8%
75.9%CA$40.00CA$6.90CA$8.179
Aug ’24CA$7.60
CA$13.41
+76.5%
72.1%CA$40.00CA$7.20CA$8.389
Jul ’24CA$7.00
CA$13.41
+91.6%
72.1%CA$40.00CA$7.20CA$6.329
Jun ’24CA$6.70
CA$18.61
+177.8%
41.9%CA$40.00CA$12.00CA$8.4210
May ’24CA$8.30
CA$18.61
+124.2%
41.9%CA$40.00CA$12.00CA$10.1310
Apr ’24CA$9.40
CA$19.05
+102.7%
39.7%CA$40.00CA$12.00CA$5.8111
Mar ’24CA$11.30
CA$19.05
+68.6%
39.7%CA$40.00CA$12.00CA$4.3111
Feb ’24CA$14.60
CA$22.59
+54.7%
45.8%CA$50.00CA$12.50CA$5.5011
Jan ’24CA$12.50
CA$23.50
+88.0%
41.4%CA$50.00CA$12.50CA$6.5011
Dec ’23CA$17.80
CA$24.18
+35.9%
38.0%CA$50.00CA$17.50CA$6.3011
Nov ’23CA$18.20
CA$23.91
+31.4%
39.3%CA$50.00CA$15.00CA$6.4011

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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