Lucara Diamond Valuation

Is LUC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LUC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate LUC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate LUC's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LUC?

Key metric: As LUC is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for LUC. This is calculated by dividing LUC's market cap by their current revenue.
What is LUC's PS Ratio?
PS Ratio	0.9x
Sales	US$165.68m
Market Cap	US$153.28m

LUC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.1x
Enterprise Value/EBITDA	7.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does LUC's PS Ratio compare to its peers?

The above table shows the PS ratio for LUC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	17.9x
STGO Steppe Gold	0.8x	n/a	CA$164.3m
ASM Avino Silver & Gold Mines	2.9x	11.3%	CA$229.0m
VOXR Vox Royalty	12.1x	33.7%	CA$194.3m
MTA Metalla Royalty & Streaming	55.6x	34.4%	CA$394.9m
LUC Lucara Diamond	0.9x	1.1%	CA$214.3m

Price-To-Sales vs Peers: LUC is good value based on its Price-To-Sales Ratio (0.9x) compared to the peer average (14.7x).

Price to Sales Ratio vs Industry

How does LUC's PS Ratio compare vs other companies in the CA Metals and Mining Industry?

83 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	2.9x	16.5%
LUC Lucara Diamond	0.9x	1.1%	US$153.28m
LUN Lundin Mining	1.9x	4.4%	US$7.91b
BTO B2Gold	1.9x	8.7%	US$3.68b

83 Companies		Estimated Growth	Market Cap
Industry Avg.	2.9x	40.3%
LUC Lucara Diamond	0.9x	71.6%	US$153.28m

No more companies

Price-To-Sales vs Industry: LUC is good value based on its Price-To-Sales Ratio (0.9x) compared to the Canadian Metals and Mining industry average (3x).

Price to Sales Ratio vs Fair Ratio

What is LUC's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LUC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.9x
Fair PS Ratio	1.2x

Price-To-Sales vs Fair Ratio: LUC is good value based on its Price-To-Sales Ratio (0.9x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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