GLASF
Glass House Brands Inc.
$10.15
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 302.8% above fair value
You pay
$10.15
Bear
$2.16
Fair
$2.52
Bull
$2.88
Bear
$2.16
-78.7%
$0.12 × 18x P/E
Fair
$2.52
-75.2%
$0.12 × 21x P/E
Bull
$2.88
-71.6%
$0.12 × 24x P/E
Key Value Driver
Normalized P/E multiple (21x base case)
Implied Market Multiple
84.6x
Summary
Applying a 21x P/E to adjusted EPS of $0.12, the base-case value is $2.52 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples