As of May 23, 2025, Heritage Cannabis Holdings Corp has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $0.01, this represents a potential upside of -1771.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -1652.9% |
| Potential Upside (10-year) | -1771.7% |
| Discount Rate (WACC) | 6.1% - 178.4% |
Revenue is projected to grow from $30 million in 10-2023 to $412 million by 10-2033, representing a compound annual growth rate of approximately 30.0%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 10-2023 | 30 | 1% |
| 10-2024 | 31 | 6% |
| 10-2025 | 47 | 49% |
| 10-2026 | 69 | 48% |
| 10-2027 | 97 | 39% |
| 10-2028 | 130 | 34% |
| 10-2029 | 173 | 33% |
| 10-2030 | 221 | 28% |
| 10-2031 | 280 | 27% |
| 10-2032 | 343 | 22% |
| 10-2033 | 412 | 20% |
Net profit margin is expected to improve from -67% in 10-2023 to -50% by 10-2033, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 10-2023 | (20) | -67% |
| 10-2024 | (19) | -62% |
| 10-2025 | (28) | -59% |
| 10-2026 | (39) | -57% |
| 10-2027 | (53) | -55% |
| 10-2028 | (68) | -52% |
| 10-2029 | (90) | -52% |
| 10-2030 | (114) | -52% |
| 10-2031 | (143) | -51% |
| 10-2032 | (174) | -51% |
| 10-2033 | (207) | -50% |
with a 5-year average of $3 million. Projected CapEx is expected to maintain at approximately 57% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 10-2024 | 5 |
| 10-2025 | 10 |
| 10-2026 | 17 |
| 10-2027 | 28 |
| 10-2028 | 43 |
| 10-2029 | 59 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 100 |
| Days Inventory | 369 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 2024 | (15) | (2) | 18 | 1 | (32) |
| 2025 | (19) | (3) | 27 | 9 | (52) |
| 2026 | (23) | (4) | 40 | 17 | (75) |
| 2027 | (25) | (6) | 55 | 18 | (93) |
| 2028 | (25) | (7) | 74 | 20 | (113) |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -1652.9% |
| 10-Year DCF (Growth) | 0.00 | -1771.7% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is Heritage Cannabis Holdings Corp (CANN.CN) a buy or a sell? Heritage Cannabis Holdings Corp is definitely a sell. Based on our DCF analysis, Heritage Cannabis Holdings Corp (CANN.CN) appears to be overvalued with upside potential of -1771.7%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider reducing exposure at the current market price of $0.01.