Charlotte's Web Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: Insufficient data to calculate CWEB's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate CWEB's fair value for valuation analysis.

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for CWEB. This is calculated by dividing CWEB's market cap by their current revenue.
What is CWEB's PS Ratio?
PS Ratio	0.4x
Sales	US$52.85m
Market Cap	US$22.39m

CWEB 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	1.1x
Enterprise Value/EBITDA	-2.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for CWEB 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	0.6x
CXXI C21 Investments	1x	n/a	CA$36.6m
WOLF Grey Wolf Animal Health	1.1x	n/a	CA$27.3m
FFNT 4Front Ventures	0.4x	n/a	CA$41.2m
ACRG.A.U Acreage Holdings	0.1x	n/a	US$26.8m
CWEB Charlotte's Web Holdings	0.4x	-4.0%	CA$31.6m

Price-To-Sales vs Peers: CWEB is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.6x).

Price to Sales Ratio vs Industry

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

24 Companies	Price / Sales	Estimated Growth	Market Cap
AYR.A Ayr Wellness	0.2x	2.6%	US$89.06m
ACRG.A.U Acreage Holdings	0.1x	n/a	US$26.82m
TIUM.U Cansortium	0.2x	n/a	US$24.16m
MRV Nuvo Pharmaceuticals	0.2x	n/a	US$11.21m

24 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: CWEB is good value based on its Price-To-Sales Ratio (0.4x) compared to the Canadian Pharmaceuticals industry average (0.8x).

Price to Sales Ratio vs Fair Ratio

What is CWEB'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.

CWEB PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	0.3x

Price-To-Sales vs Fair Ratio: CWEB is expensive based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).

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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