Trulieve Cannabis (TRLV) has become the first U.S. marijuana company to trade on the New York Stock Exchange, following the federal reclassification of medical marijuana, which opened the door to its uplisting.

The recent NYSE listing comes after a 34.67% 1 month share price return and a 58.56% 3 month share price return. The 1 year total shareholder return of 193.08% and 3 year total shareholder return of 155.70% contrast with a 5 year total shareholder return that is down 74.10%. This suggests momentum has picked up more recently around Trulieve Cannabis, alongside the recently announced share repurchase program and leadership change.

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With Trulieve Cannabis now on the NYSE, a recent share price surge, a new buyback plan, and a loss-making but growing net income line, the key question is simple: is there still value on the table, or is the stock already pricing in future growth?

Most Popular Narrative: 51.9% Undervalued

Using the most followed narrative, Trulieve Cannabis has an indicated fair value of $21 per share compared with the last close of $10.10, which frames a wide valuation gap for investors to interrogate.

A strong cash position of US$353 million against US$290 million in debt and positive free cash flow of US$42 million in the quarter provide room to fund new stores, production upgrades and possible acquisitions, which can influence future revenue and earnings power.

Want to understand why this narrative supports such a big gap between price and fair value? The story hinges on a sharp earnings swing, richer margins and a future valuation multiple that usually belongs to far more mature operators.

Result: Fair Value of $21 (UNDERVALUED)

However, the Trulieve Cannabis story could look very different if federal tax relief around 280E proves more limited than hoped or if new investments fail to earn solid returns.

Next Steps

With mixed sentiment around Trulieve Cannabis, this is a moment to move quickly and test the numbers against your own expectations using the 4 key rewards and 1 important warning sign

Looking for more investment ideas beyond Trulieve Cannabis?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.