SNDL Valuation

Is VY4 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 VY4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VY4 (€1.9) is trading above our estimate of fair value (€0.4)

Significantly Below Fair Value: VY4 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for VY4?

Key metric: As VY4 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for VY4. This is calculated by dividing VY4's market cap by their current revenue.
What is VY4's PS Ratio?
PS Ratio0.8x
SalesCA$911.22m
Market CapCA$734.99m

Price to Sales Ratio vs Peers

How does VY4's PS Ratio compare to its peers?

The above table shows the PS ratio for VY4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.2x
PSG PharmaSGP Holding
2.6x7.7%€287.8m
93M1 MPH Health Care
0.9x-60.2%€105.3m
DMP Dermapharm Holding
1.7x4.1%€2.0b
2FJ0 Pierrel
3.4xn/a€92.8m
VY4 SNDL
0.8x7.2%€525.7m

Price-To-Sales vs Peers: VY4 is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (2.2x).


Price to Sales Ratio vs Industry

How does VY4's PS Ratio compare vs other companies in the European Pharmaceuticals Industry?

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.2.9x3.4%
VY4 SNDL
0.8x7.2%US$525.69m
VY4 0.8xIndustry Avg. 2.9xNo. of Companies35PS0612182430+
24 CompaniesEstimated GrowthMarket Cap
Industry Avg.2.9x21.6%
VY4 SNDL
0.8x146.1%US$525.69m
No more companies

Price-To-Sales vs Industry: VY4 is good value based on its Price-To-Sales Ratio (0.8x) compared to the European Pharmaceuticals industry average (2.9x).


Price to Sales Ratio vs Fair Ratio

What is VY4'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.

VY4 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.8x
Fair PS Ratio1.6x

Price-To-Sales vs Fair Ratio: VY4 is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).


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 VY4 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1.90
€3.25
+71.0%
14.5%€3.72€2.78n/a2
Nov ’25€1.92
€3.32
+72.7%
9.3%€3.63€3.01n/a2
Oct ’25€1.83
€3.32
+81.1%
9.3%€3.63€3.01n/a2
Sep ’25€1.76
€3.31
+88.3%
10.3%€3.65€2.97n/a2
Aug ’25€2.11
€3.33
+57.6%
10.9%€3.69€2.96n/a2
Jul ’25€1.74
€3.37
+93.1%
10.7%€3.73€3.01n/a2
Jun ’25€2.04
€3.37
+64.8%
10.4%€3.72€3.01n/a2
May ’25€2.32
€3.34
+44.2%
10.6%€3.70€2.99n/a2
Apr ’25€1.91
€3.34
+75.0%
10.6%€3.70€2.99n/a2
Mar ’25€1.23
€3.38
+175.7%
9.7%€3.70€3.05n/a2
Feb ’25€1.25
€3.38
+171.0%
9.7%€3.70€3.05n/a2
Jan ’25€1.51
€3.38
+123.4%
9.7%€3.70€3.05n/a2
Dec ’24€1.33
€3.34
+151.0%
10.2%€3.69€3.00n/a2
Jun ’24€1.30
€3.01
+132.0%
0.6%€3.02€2.99€2.042
May ’24€1.31
€2.97
+126.2%
0.02%€2.97€2.96€2.322
Apr ’24€1.46
€3.20
+118.9%
11.0%€3.69€2.74€1.914
Mar ’24n/a
€3.20
0%
11.0%€3.69€2.74€1.234
Feb ’24n/a
€3.20
0%
11.0%€3.69€2.74€1.254
Jan ’24n/a
€3.22
0%
10.9%€3.71€2.76€1.514
Dec ’23n/a
€3.31
0%
11.3%€3.84€2.86€1.334
Nov ’23n/a
€3.48
0%
14.4%€4.11€2.89€1.363

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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