HEXO Corp (HEXO) P/S Ratio
HEXO Corp (HEXO) has a price-to-sales ratio of 10.84x, placing it in the Expensive range for cannabis stocks. The company has a market cap of $3.70B and TTM revenue of $728.7M. Revenue is declining 35.0% YoY.
P/S Ratio (TTM)
10.84x
EV/Revenue
1.77x
Market Cap
$3.70B
Revenue Growth
-35.0%
Valuation Breakdown
| Metric | Value |
|---|---|
| Stock Price | $44.70 |
| Market Capitalization | $3.70B |
| TTM Revenue | $728.7M |
| Price-to-Sales (TTM) | 10.84x |
| EV/Revenue | 1.77x |
| Revenue Growth (YoY) | -35.0% |
| Gross Margin | -9.4% |
| Sector | LP |
| Exchange | NASDAQ |
| Valuation Range | Expensive |
Frequently Asked Questions
What is HEXO's current price-to-sales ratio?+
The price-to-sales (P/S) ratio divides HEXO Corp's market capitalization by its trailing twelve months of revenue. Since many cannabis companies are not yet profitable, P/S is one of the most widely used valuation metrics in the sector. A lower ratio may suggest the stock is undervalued relative to revenue.
How does HEXO's P/S compare to other cannabis stocks?+
P/S ratios in cannabis typically range from 0.5x to 5x depending on growth rate, profitability, and market sentiment. High-growth companies command higher multiples, while mature, lower-growth companies trade at lower multiples. Compare HEXO Corp to peers in the same sub-sector (MSO, LP, ancillary) for meaningful context.
Is HEXO overvalued or undervalued based on P/S?+
A single metric like P/S cannot definitively determine if HEXO Corp is over- or undervalued. Consider P/S alongside revenue growth rate, gross margins, cash position, and competitive dynamics. A company growing revenue at 50% YoY may justify a higher P/S than one growing at 5%. Also consider enterprise value-to-revenue (EV/Revenue) which accounts for debt and cash.