Here are the most undervalued cannabis stocks for your cannabis investments, listed in descending order based upon their intrinsic value versus current stock price. This helps determine the best cannabis stocks for your cannabis investments. This chart shows the percentage upside opportunity. I am using Discounted Cash Flow Calculators to determine what the future cash flow over the next 5 years is worth to an investor today. This takes into consideration the revenue growth rates, EBTIDA levels, interest rates, risk, and other key metrics.
I am doing Discounted Cash Flow Calculations on all cannabis stocks that I cover that are EBTIDA profitable and can be projected into the future over the next five years. We are entering a new quarter and as the new financial data becomes available, I will be adding these stocks into the list. That means this list will be growing continuously over the next quarter and will be updated as I go along to determine what the most undervalued cannabis stocks are.
The prices for the most undervalued cannabis stocks were previously determined in the respective company postings. Since I will be updating new companies on a regular basis, I will be adding to this list and updating each of the respective company’s intrinsic value and upside potential. You can search for each cannabis stock to view their cannabis stock forecast. Or, just visit the Cannabis Investments Forum & Discussion and find the stock you are looking for.
Most Undervalued Cannabis Stocks
Aurora Cannabis Inc.
Body & Mind
Delta 9 Cannabis
Fire & Flower Holdings
Flower One Holdings
Glass House Brands
Green Organic Dutchman
Green Thumb Industries
iAnthus Capital Holdings
Icanic Brands Company
IM Cannabis Corp
Item 9 Labs
Khiron Life Sciences
Organigram Holdings Inc.
Planet 13 Holdings
Sundial Growers Inc.
West Island Brands
Visit the Cannabis Stock Forum & Discussion
Find out what others have to say about all of the stocks in the list in the cannabis stocks Forum & Discussion:
Criteria for Discounted Cash Flow Calculator Analysis
The key variable for me to do a discounted cash flow calculation on any one stock is that the cannabis company is first, EBITDA profitable, and second, that the future revenue & profits are projectable and predictable. This eliminates many stocks from this. I believe I can do about 40 – 50 stocks in the coming quarters as that is the number of companies that qualify in this regard.
25 thoughts on “Most Undervalued Cannabis Stocks”
Thanks for this DH! I was not familiar with C21 Investments and Marimed until i found your channel.
I would have thought Trulieve would be a better pick than Curaleaf.
Hey Mark… Actually, Trulieve is a bit better than Curaleaf. But, I have not added Trulieve to the list just yet. It will likely be higher on the list. I have also been continuously updating the stock prices. They will be more reflective of current events going in to the future.
Have you looked at Heritage Cannabis? Nice revenue growth. Q2 financials were pretty good. Costs in order and have started to produce in the U.S
I have been wanting to do a full run on Heritage. They printed some solid revenue gains this quarter and are slowly building up a solid business base. I am trying to run through all of the stocks that I have on the site and get at least the base analysis for every company. I want to do that prior to the end of this reporting quarter because I expect we will see a mad rush into cannabis stocks over the course of the next couple of weeks. Cannabis federal legalization is likely to get a lot of chatter in the next few weeks and I want that content available.
I will get to them. Hopefully, very soon.
Good Day DH, love your podcast. I am currently holding in order of weight: Tilray, Curaleaf, Cresco Labs and Planet 14. Planet 13 being my newest addition. What are your thoughts on each? Very much appreciated. Phil from Montreal.
@Philip Robillard – I would dump my position on Curleaf if I were you..
I was in Decibel Long before you started covering & a sigh-of-relief when you did. Your record speaks for itself. Problem is these gems’ get gobbled up for just pennies of the target price in this industry. Happens-all-the-Time. The only retailers making money are the ones that bought within previous couple months before the sale; Supreme, 48North, ISH to mention a few. There is no going long. Or be forced into the ‘buyers’ by inheritance which can easily be a disaster. Then they call it a premium buy-out as the company sits around it’s all time lows, when the buyout occurs. Totally corruption in the Cannabis space imo.
I am looking for a big surge to happen here and things look like they are setting up. We had one cannabis stock surge 220% in just one day on Friday. This was driven from the House of Representatives sending a cannabis federal legalization bill to the floor. At the same time, Senator Chuck Schumer stated in January that he would be dropping the Senate version in April. So, stocks are starting to front this and are starting to move.
But, most of these stocks, including Decibel Cannabis, will not really become more stable until after Federal Legalization and then uplisting to Nasdaq or NYSE. That is when a lot of this is going to become more of an even playing field and fundamentals start to matter. For now, surges happen, then people get disappointed and sell off, pushing stocks lower.
Another thing to keep in mind is that there is likely to be a whole slew of M&A activity in the coming years. There will be many opportunities like this in the coming weeks and months ahead.
Yes, these stocks are getting gobbled up for pennies. But, they are being gobbled up for pennies using stocks that are valued pennies-on-the-dollar. Given that, when the acquiring stocks move higher, your value will be in there.
“Totally corruption in the Cannabis space imo.” <== Amen to that
Have you looked at Khiron?
Hi Pete… yes. I have absolutely looked at Khiron. There is a lot of information on them in the Forum under the International section: Click Here. I like this company a lot and I feel the international market will really start to pick up in a big way over the next few years. This could be much bigger than all of the US market.
KHRNF Stock is really starting to pick up.
@dhtaylor Trading Halt Hasn’t traded today
Looks like some news coming reason at request of the company pending NEWS
IIROC Trading Halt – KHRN
BY Canada NewsWire— 8:42 AM ET 06/02/2022
VANCOUVER, BC, June 2, 2022 /CNW/ – The following issues have been halted by IIROC:
Company: Khiron Life Sciences Corp. (KHRWF)
TSX-Venture Symbol: KHRN
All Issues: Yes
Reason: At the Request of the Company Pending News
Halt Time (ET): 8:35 AM
IIROC can make a decision to impose a temporary suspension (halt) of trading in a security of a publicly-listed company. Trading halts are implemented to ensure a fair and orderly market. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada.
SOURCE Investment Industry Regulatory Organization of Canada (IIROC) – Halts/Resumptions
Will now we know why it halted and why it went DOWN because of more diluted shares. What’s your thoughts? At least it is .15 and .20 warrants
Khiron and Life Sciences Raises C$4M Via Equity Offering
BY Benzinga— 3:35 PM ET 06/02/2022
Khiron Life Sciences Corp. (TSXV:KHRN) (OTC:KHRNF) has priced and sized its overnight marketed public offering.
The company intends to issue 26.70 million units at C$0.15 per unit for gross proceeds of C$4.01 million.
Each unit will consist of one common share and one common share purchase warrant. Each unit warrant is exercisable to acquire one common share at C$0.20 for a period of 24 months following the closing date of the offering.
The underwriters have been granted an option to purchase up to an additional 15% of the units.
The company plans to use the offering net proceeds for general corporate and working capital purposes. The offering is expected to close on June 10, 2022.
Price Action: KHRN shares traded lower by 27.78% at C$0.13 on TSXV on the last check Thursday.
Thanks for the quick response. FYI they just got into Mexico and the UK.
#cannabisinvesting69yahoo-com- Curleaf doesn’t have the best track record over the last 5 years. Example, CURA is unprofitable, and losses have increased over the past 5 years at a rate of around 35% per year. Plus, CURA’s short term assets ($952.3M) do not cover its long term liabilities ($1.1B)… Also, after reviewing CURA’s debt to equity ratio has increased from 10.2% to 24.1% over the past 5 years. There are just way to many better stocks than Curleaf in my personal opinion. I use to shop there and there products are junk especally 80% of there flower is terrible.. I don’t care what saled they have, I refuse to go back and I refuse put my money in a company that i DON’T LIKE..
@mattpaul02yahoo-com & @cannabisinvesting69yahoo-com
These are some of the most basic principles of value investing: Invest in what you know and what you like. Thing is, just because CURLF stock is so ginormous, does not necessarily mean they are the best. We learned this from Canada. Companies went all-in trying to be as big as possible. Now, every one of them is backpedaling trying to become boutique. This is why I focus on the smaller stocks. I think they all will get acquired by the bigger ones and the bigger companies just become holding companies and processors of the smallish product lines… especially the dispensaries.
You can look at beer as a perfect example. The bigger labels are buying up the micros for a reason: consumers prefer them. The bigger companies are providing bigger distribution to the micros. The same will happen with cannabis.
We are at what is very likely the bottom of the stocks. If you transferred ownership of one stock to another you are likely not losing out on opportunity cost since all stocks are down. Ask the bigger question as to which is likely to head higher in a bigger way. That should be the question.
Curaleaf will do well for different reasons than, say, Planet 13 or MariMed. But, it is not to say that CURLF stock does not go higher. It goes higher for different reasons. You get to weigh these options and make decisions. I think the risk/reward is skewed in favor of bigger rewards over the long term.
@dhtaylor Beer is a GREAT analogy for many reasons. Including the fact investors aren’t making money there either 🙂
Thanks for adding TCNNF to the list D. H.
They reported good numbers the other day, great investor meeting and forecast for growth, said they had cash. Must be some big things to come as business increases this year, guessing.
I am glad you mentioned Heritage.
D.H. mentioned to me in a private email it’s basically on his list to look into.
I have been following HERTF. I like the white label deal they have with HITI as well as how they are getting into the US cannabis market by branding and taking their expertise to support their partners grow their brands in the US market.
I think that will become a trend with Canadian cannabis companies getting into US market by basically partnerships supporting small US cannabis companies just getting started, with expertise, training support, branding and licensing agreements, and eventually into maybe import export of cannabis. Maybe M&A as well.
I think a lot of Canadian Cannabis experts will end up coming to the USA and working here for a while, setting up many new US cannabis companies that are just getting started.
I wish lawmakers would seriously look at Canadian cannabis regulations, and ask them for advice, maybe learn from their mistakes and not have to try and re invent the wheel so to speak.
If investors look into Khirons business model with the medical marijuana clinics and training the doctors, its not difficult to imagine different versions of cannabis business models, starting where they can within the laws now and establish partnerships internationally, and build off of that over time as laws change. In fact, likely help shape the laws and regulations, so they are productive and not counter productive like many cannabis regulations in the US States.CA for example.
I think US lawmaker should be greateful for Canada taking the lead on legalization of Cannabis and regulating it safely, and ask the for advice on regulating it safely. I am quite confident the Canadian people would be overwhelmingly supportive of cannabis trade between the two countries and regulating it safely, as well as working toward international cannabis trade, and maybe taking the lead on that along side the U.S. JMHO
I think Interstate commerce of cannabis in the US, and internationally would help prevent problems of too much surplus product, driving prices down. If Cannabis becomes a world wide commodity, then cannabis can be broken down into its various forms and products needed and traded internationally. Hopefully in a ethical and well regulated manner.
Fiore Cannabis (FIORF) Good News/Bad News!
If you purchase 35,764 shares at $.0065 with a projected price of $1.86 your account will be worth $100,000.00 for less than a $400.00. investment.
Fiore Cannabis Provides Corporate Update:
A creditor secured by a deed of trust against the Company’s assets has appointed a trustee to
initiate foreclosure proceedings on the assets. The creditor has given Fiore a notice of default and
made a declaration to sell such assets to satisfy its obligations.
The Company’s efforts to close previously announced financings have not been successful. This
includes the C$1.5 million Secured Convertible Note Offering originally announced on May 11,
2022 and the C$30 million term sheet financing announced May 16, 2022. Both financings did
not complete the due diligence phase.
Due to insufficient funding, the operating licenses for Fiore’s cannabis cultivation facility in Las
Vegas, Nevada have not been renewed at this time. The Company has been granted until
September 27, 2022 to satisfy this obligation.
Fiore has entered into a letter of intent to sell its California cannabis dispensary for US$500,000
dependent on completing due diligence. Creditor approval would be negotiated prior to any final
Fiore released second quarter 2022 financial results with the Financial Statements and
corresponding Management’s Discussion and Analysis for the quarter ended June 30, 2022 now
available on the Company’s SEDAR profile at http://www.sedar.com .
The Company continues to explore financing options at this time in order to secure the funds
needed to refinance the cannabis cultivation facility in Las Vegas, clean up the balance sheet and
retire outstanding debts.
10/12/2022 Update: Las Vegas License has been approved. No new funding yet.
I have looked about five times throughout my spreadsheets to see where I had come up with that price target in the Most Undervalued. I saw that toward the beginning of the week and kept looking at it wondering where I got that price. I have no spreadsheets/DCFs on it. Must have been a typo.
They do have increasing revenues. But, looks like they are out of cash. That is like oxygen in the cabin of a car that just went off a bridge and is completely submerged. Cash is out. The driver drowns.