Glass House Brands (OTCPK:GLAS.F) is set to move its subordinate voting shares to the New York Stock Exchange on June 30, 2026, following the reclassification of medical cannabis to Schedule III.

At a share price of $12.21, Glass House Brands has seen a 10.1% 1 month share price return and a 62.8% 3 month share price return, while the 1 year total shareholder return of 116.87% highlights recent momentum despite a 10.1% 7 day share price decline.

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With Glass House Brands trading at $12.21 alongside strong recent returns and a published analyst price target of $16.00, is the stock still trading at a discount, or is the market already pricing in future growth?

Preferred Price-to-Sales of 5.8x: Is It Justified for Glass House Brands?

On a P/S basis, Glass House Brands trades at 5.8x, which screens as expensive relative to both its own estimated fair level and to peers, even after recent share price gains.

The price to sales ratio compares a company’s market value to its revenue and is often used when a company is still loss making, as is the case here. For Glass House Brands, investors are effectively paying $5.80 in market value for every $1 of annual sales.

According to Simply Wall St’s fair ratio workup, a P/S of 1.2x is estimated as a more fitting level, which is far below the current 5.8x being paid by the market. Against that, the company’s revenue is forecast to grow 17.2% per year, and its SWS DCF model estimate of future cash flow value of $24.10 per share suggests some investors may be focusing more on long term cash generation than near term sales multiples.

By comparison, Glass House Brands’ 5.8x P/S is far higher than the US Personal Products industry average of 1.1x, and also above the peer average of 0.6x. This indicates investors are currently paying a premium multiple versus sector and peer benchmarks as well as the 1.2x level the market could move towards over time. Explore the SWS fair ratio for Glass House Brands

Result: Price-to-Sales of 5.8x (OVERVALUED)

However, Glass House Brands still faces risks, including ongoing net losses of $50.441 million and a high relative valuation that could compress if sector sentiment weakens.

Another View on Glass House Brands: Cash Flows Paint a Different Picture

While the 5.8x P/S ratio makes Glass House Brands look expensive on sales, the SWS DCF model points the other way. It shows an estimated future cash flow value of $24.10 per share versus the current $12.21 price, suggesting the stock could be undervalued on a cash flow basis.

This gap between a rich sales multiple and a discounted cash flow estimate leaves a mixed message. Investors may want to ask which lens fits their own expectations for Glass House Brands: near term revenue or longer term cash generation.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Glass House Brands for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 44 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Does this mixed picture around Glass House Brands leave you curious rather than convinced? Take a closer look at the underlying data now, compare the positives against the risks, and review the 2 key rewards

Looking for more investment ideas beyond Glass House Brands?

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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.