Tobacco multiples

by a searcher from Harvard University - Harvard Business School

2 years ago

Alcohol stores and products are around the "normal" ranges. Generally this is a growth market in the US

Marijuana is often above the "normal" multiples because it is seen as high growth, but obviously high risk. Very low risk of rollback now

Tobacco use is a declining category in the US. Regulatory-wise it is stable

If you were comparing a nice liquor store (lets say 4x SDE with all the caveats), a nice MJ dispensary (>4x), what would a nice tobacco shop be?

Obviously there are tons of caveats and sub-segments exposures, but assuming the financials for each looked similar, would the tobacco shop be acquired at a similar valuation to the alcohol store?

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3 comments

searcher from Università Bocconi

interesting

5 months ago | like reply | 0 likes

searcher from Bowling Green State University

Seems like many tobacco, vape, and liquor stores in my area list for way lower multiples. Almost like its a real estate or inventory sale. Either they aren't making a profit or there's some other factor(s) at play. Following to see if anyone who has experience in this space has any comments on your post.

1 year ago | like reply | 0 likes

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