Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide.
High Tide (TSXV:HITI) has drawn fresh attention after reporting second quarter 2026 results and securing credit approval for new senior secured facilities, as well as continuing to expand its Canna Cabana retail footprint in Canada.
See our latest analysis for High Tide.
High Tide's recent Canna Cabana openings and improved Q2 2026 results have coincided with an 11.01% 1 day share price return and a 7.95% 7 day share price return, while the year to date share price return is still down 8.07%. The 3 year total shareholder return of 117.90% points to longer term momentum that has been stronger than the latest share price pullback suggests.
If you are looking beyond cannabis retailers after this earnings update, it could be a good moment to scan the market and check out 3 top founder-led companies
With High Tide now posting six month net income, a sharply smaller quarterly loss, fresh credit facilities and 224 Canna Cabana stores, the key question is whether the stock is still mispriced or if the market already reflects the prospects for future growth.
Preferred Price-to-Sales of 0.5x for High Tide stock: Is it justified?
High Tide is currently valued on a P/S of 0.5x, and based on Simply Wall St's work this sits at a level that suggests the shares are priced below both peers and an internally estimated fair range.
The P/S multiple compares the CA$3.53 share price to the company's revenue, rather than its earnings, which is useful for a business that is still loss making. For a cannabis retailer and accessories business like High Tide, revenue scale and growth often matter more than current profitability when investors are weighing what they are prepared to pay.
Against that backdrop, High Tide is described as trading at good value compared to peers and the broader Canadian Pharmaceuticals industry, where average P/S levels are closer to 0.8x and the peer group average is also around 1x. When set against an estimated fair P/S ratio of 0.8x that the market could move towards if sentiment and fundamentals align, the current 0.5x reading is presented as a discount rather than a premium.
Explore the SWS fair ratio for High Tide
Result: Price-to-sales of 0.5x (UNDERVALUED)
However, High Tide still reports a CA$44.03 million net loss and a 5-year total shareholder return that declined 63.79%, which could weigh on sentiment.
Another View: What the SWS DCF Model Says About High Tide
Alongside the 0.5x P/S ratio, Simply Wall St's DCF model points to a different picture for High Tide. With the stock at CA$3.53 and an estimated future cash flow value of CA$31.56, the model describes the shares as trading well below that level. If that gap holds, is the market too cautious or is the model too optimistic?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day ( check out High Tide 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 9 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
If you have seen enough to gauge where sentiment around High Tide might be heading but are still undecided, move quickly and review the data that matters most to you by checking the 4 key rewards
Looking for more investment ideas beyond High Tide?
High Tide might have caught your attention, but some of the best opportunities often show up when you widen your search and compare across sectors and styles.
-
Target potential bargains by scanning companies that combine attractive pricing with solid fundamentals using the 9 high quality undervalued stocks .
-
Prioritise resilience by reviewing businesses that score well on financial strength through the solid balance sheet and fundamentals stocks screener (11 results) .
-
Spot opportunities that the market may be overlooking by checking the screener containing 8 high quality undiscovered gems .
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.
Companies discussed in this article include HITI.V .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
