Recent chatter about rescheduling marijuana to Schedule III in the US is giving cannabis names fresh attention, and SNDL (NasdaqCM:SNDL) is right in the mix after a sharp 1 day jump.

See our latest analysis for SNDL.

That 24.9% 1 day share price return and 30 day share price return of 31.6% suggest momentum is snapping back after a softer 90 day share price return of negative 11.6%. The 1 year total shareholder return of 24.2% points to a still constructive longer term trend as investors reassess regulatory risk and SNDL’s buyback signal.

If this policy driven move has you rethinking where growth and risk might line up next, it could be worth scanning fast growing stocks with high insider ownership as a shortlist of other fast moving opportunities.

With analyst targets sitting well above the current price and sentiment riding a regulatory wave, the real question now is whether SNDL is still trading at a discount or if markets are already pricing in its next leg of growth.

With the narrative fair value sitting at $4.76 against a last close of $2.21, the implied upside puts SNDL’s expansion plan under the spotlight.

Disciplined cost control, ongoing productivity improvements, and realized synergies from recent acquisitions have resulted in record gross margins and the first-ever positive operating income in company history, setting a foundation for further improvements in net margins and bottom-line earnings.

Read the complete narrative.

Curious how modest revenue growth can still underpin a punchy upside case? The secret lies in a margin reset, an earnings step change, and a surprisingly restrained future valuation multiple. Want to see how those moving parts add up to this fair value call?

Result: Fair Value of $4.76 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, sustained cash burn or weaker than expected international margins could undermine the earnings reset that investors are banking on.

Find out about the key risks to this SNDL narrative.

Our SWS DCF model tells a very different story, suggesting fair value closer to $1.09, which would make SNDL look overvalued at $2.21 despite the upbeat, narrative-based price target. Is the market underestimating cash flow risks, or are the model assumptions too conservative?

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 SNDL 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 908 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.