What It’s Worth: Value and Business Challenges in the Budding Cannabis Industry

//What It’s Worth: Value and Business Challenges in the Budding Cannabis Industry

What It’s Worth: Value and Business Challenges in the Budding Cannabis Industry

When valuing a cannabis business, you can often approach the cash flow analysis with the same formula used in many other valuations: Present value of any asset is equal to the cash flow divided by the risk less growth, as shown in Exhibit 1. The critical issue in this industry, though, is the lack of reliable historical cash flow information, which requires the application of a discounted cash flow analysis based on projected performance…..

By |2017-01-24T01:24:07+00:00December 5th, 2016|All Posts|0 Comments

About the Author: