A company called Benzinga wrote an article about how much money a marijuana business (called MSO) makes and how much it should be worth. They looked at different factors, like how much the companies spend on buildings and equipment, how much risk they have, and how much money they expect to make in the future. Based on these factors, they think the marijuana businesses are not expensive enough compared to how much money they make. Read from source...

1. The article is written from a pro-cannabis perspective and assumes that the readers are already convinced of its benefits and potential. However, it does not provide any objective evidence or data to support these claims.

Bullish

DAN: I have analyzed your question and the article you provided. The sentiment of this article is bullish because it suggests that MSO EBITDA multiples should be higher than they are currently, implying that there is potential for growth and profitability in the cannabis sector. Additionally, the article highlights that MSOs are cheap relative to their intrinsic values, which also indicates a positive outlook on the industry's future performance.

- The article suggests that multi-state operators (MSOs) in the cannabis industry are undervalued relative to their intrinsic values, as estimated by a discounted cash flow (DCF) model that considers factors such as sales growth, capital spending, equity discount rates, and tax rates.
- The DCF model implies that MSOs should trade at EBITDA multiples between 13.25x and 15.8x, which is significantly higher than the current average of 7.8x for consensus next twelve months (NTM) EBITDA estimates.
- The main risks to this investment thesis are regulatory uncertainty, capital cost inflation, and competition, as well as potential legal or operational issues that could affect MSOs' profitability and growth prospects.