Although Aphria stock has increased 30%, its forward EV-to-sales multiple fell from 2.53x on July 31 to 2.39x on September 6. The impressive fourth-quarter performance appears to have prompted analysts to raise their revenue expectations for the next four quarters. The higher revenue estimates lowered Aphria’s forward EV-to-sales multiple. The company was trading at a lower valuation multiple compared to its forward EV-to-sales multiple of 2.76 at the beginning of this year and its historical average forward EV-to-sales multiple of 8.90x.

On September 6, Aurora Cannabis was trading at a forward EV-to-sales multiple of 11.77x compared to 12.07x on July 31. The decline of 2.7% is Aurora Cannabis’s stock price led to a fall in its EV-to-sales multiple. There wasn’t much change in analysts’ revenue expectations for the next four quarters from July 31 to September 6. However, the company is trading at a higher EV-to-sales multiple compared to 7.58x at the beginning of 2019 and its historical average of 10.48x.

In the above graph, you can see that Aurora Cannabis is trading above its peers’ median value of 4.74x. In contrast, Aphria is trading below its peers’ median value.