Analyzing EBITDA Limitations and Industry Focus in Cannabis Sector

This chapter explores the drawbacks of using EBITDA as a metric in the cannabis industry, cautioning against its efficacy due to significant tax implications and maintenance capex considerations. It discusses the shift away from EPIT and examines the impact of 280E on business performance, advising investors to focus on operating cash flows, taxes, debt, and return on capital metrics for a more accurate evaluation of cannabis companies. Additionally, the chapter touches on investment strategies, company analysis, and risk assessment within the cannabis sector.