How to Determine the Value of a Cannabis Business
The current most widespread method to determine the value of a cannabis business is 1 year of gross revenue. So if the business brings in $50,000.00 per month in gross revenue the valuation would be in the neighborhood of $600,000 ($50,000.00 X 12 months). If In most cases it’s equal to the total gross revenue generated the prior calendar year of business. If it’s a new operation with less data we would find a way to forecast one year worth of gross revenue. Of course this is one method of calculating the value of a cannabis business. There are many factors that go into the final determination for value but this is a industry known method that differs slightly from typical business valuation.