Is Aurora a Buy at Under $2?
Aurora Cannabis' (NYSE: ACB) stock has been sinking like a stone lately. To put into perspective its massive decline: Troubled pot stock CannTrust Holdings is down 59% over the past six months. Aurora, however, has crashed more than 70% during the same period, while the Horizons Marijuana Life Sciences ETF, which contains a broad mix of pot stocks, is only down 44%.
Aurora is a risky buy, but given how much of a sell-off there's been, it could be a sign that there's been an overreaction in the markets. Let's take a closer look at if investors should consider buying shares of the stock should it dip below $2 again.
One of the hardest things to do with pot stocks is properly value them. Without much of a history and valuations being all over the place these past few years, narrowing down just how much public cannabis companies are worth is more of an art than it is a science. And that only complicates the process of determining whether a stock is a buy or not. One way we can assess Aurora's value is by looking at its sales and comparing that to the relative valuation of its peers.
Source Fool.com
