Simply Better Brands Valuation

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

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

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for SBBC. This is calculated by dividing SBBC's market cap by their current revenue.
What is SBBC's PS Ratio?
PS Ratio	0.8x
Sales	US$72.72m
Market Cap	US$55.10m

SBBC 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	0.8x
Enterprise Value/EBITDA	-12.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for SBBC 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	2.6x
GWAY Greenway Greenhouse Cannabis	9.4x	n/a	CA$56.6m
MDP Medexus Pharmaceuticals	0.4x	6.5%	CA$52.0m
DB Decibel Cannabis	0.3x	11.8%	CA$28.8m
XLY Auxly Cannabis Group	0.4x	n/a	CA$51.4m
SBBC Simply Better Brands	0.8x	16.5%	CA$72.2m

Price-To-Sales vs Peers: SBBC is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (2.7x).

Price to Sales Ratio vs Industry

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

23 Companies	Price / Sales	Estimated Growth	Market Cap
AYR.A Ayr Wellness	0.2x	2.6%	US$82.27m
ACRG.A.U Acreage Holdings	0.08x	n/a	US$26.82m
MRV Nuvo Pharmaceuticals	0.2x	n/a	US$11.21m
IMCC IM Cannabis	0.2x	24.8%	US$7.96m

23 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: SBBC is expensive based on its Price-To-Sales Ratio (0.8x) compared to the Canadian Pharmaceuticals industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is SBBC'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.

SBBC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.8x
Fair PS Ratio	0.9x

Price-To-Sales vs Fair Ratio: SBBC is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

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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