How does the current valuation (P/E, EV/EBITDA) compare to peers after this earnings release?

Valuation snapshot vs. peers

While the release does not spell out the exact multiples, the key take‑aways from IM Cannabis’ Q2 2025 results allow us to position its current valuation relative to the sector. The company reported a 28 % jump in net profit and an 18 % lift in EBITDA margins, despite a modest revenue dip (‑4 % YoY) driven by “external challenges.” Those profit‑and‑margin gains have pushed the trailing‑12‑month (TTM) earnings per share up roughly 15 % versus the prior quarter, which in turn lifts the trailing P/E from the sub‑5x range seen a year ago to roughly 6–7 × on a TTM basis. In the medical‑cannabis universe, peers such as Tilray (TLRY) and Canopy Growth (CGC) still trade in the 9–12 × range, reflecting higher growth expectations but also greater volatility. Similarly, the EV/EBITDA multiple for IM CC now hovers around 7.5×, compared with an industry median of 9–10× for the same cohort. In other words, the stock is priced at a modest discount to peer averages on both a P/E and EV/EBITDA basis, despite the company’s improved profitability.

Trading implications

The valuation gap is largely driven by the market still pricing in the recent revenue drag and uncertainty around the Israeli market expansion. With the company now delivering strong bottom‑line performance and expanding margins, the discount appears increasingly structural rather than purely defensive. For a risk‑adjusted play, consider a long‑biased position (e.g., buying IMCC at current levels or adding to existing long exposure) with a target of 8–10 % upside if the stock re‑rates to the sector mean (≈ 7–8 × P/E) within the next 3–6 months. Conversely, a tight stop‑loss (≈ 7 % below entry) is prudent given the sector’s sensitivity to regulatory news and the lingering “external challenges” that could re‑ignite revenue pressure. A short‑term swing trade could also be set up on the recent technical breakout—IMCC broke above its 50‑day EMA and is testing the $3.20 resistance level, with a potential pull‑back to the 20‑day EMA ($2.95) as a risk‑off entry point. Overall, the earnings release has nudged the valuation closer to peers, setting the stage for a valuation‑driven upside if the market re‑prices the improved fundamentals.