Gem Diamonds Limited

LSE:GEMD Stock Report

Market Cap: UK£15.8m

Gem Diamonds Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

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

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

Key Valuation Metric

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

Key metric: As GEMD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GEMD. This is calculated by dividing GEMD's market cap by their current earnings.
What is GEMD's PE Ratio?
PE Ratio21.5x
EarningsUS$922.00k
Market CapUS$19.83m

Price to Earnings Ratio vs Peers

How does GEMD's PE Ratio compare to its peers?

The above table shows the PE ratio for GEMD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.7x
SLP Sylvania Platinum
21.6x43.0%UK£120.4m
JLP Jubilee Metals Group
32.3x84.0%UK£153.6m
ARCM Arc Minerals
2.2xn/aUK£18.8m
LEX Lexington Gold
42.7xn/aUK£12.9m
GEMD Gem Diamonds
21.5x1.9%UK£15.8m

Price-To-Earnings vs Peers: GEMD is good value based on its Price-To-Earnings Ratio (21.5x) compared to the peer average (24.7x).

Price to Earnings Ratio vs Industry

How does GEMD's PE Ratio compare vs other companies in the GB Metals and Mining Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ENPL En+ Group International
2.2x8.0%US$4.67b
NLMK Novolipetsk Steel
0.8xn/aUS$4.08b
EVR EVRAZ
0.4xn/aUS$1.42b
MTL Metals Exploration
0.9x-60.3%US$124.52m
GEMD 21.5xIndustry Avg. 10.3xNo. of Companies9PE01020304050+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GEMD is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the UK Metals and Mining industry average (10.3x).

Price to Earnings Ratio vs Fair Ratio

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

GEMD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.5x
Fair PE Ratio9.7x

Price-To-Earnings vs Fair Ratio: GEMD is expensive based on its Price-To-Earnings Ratio (21.5x) compared to the estimated Fair Price-To-Earnings Ratio (9.7x).

Analyst Price Targets

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

The above table shows the analyst GEMD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.11
UK£0.35
+205.2%
16.0%UK£0.40UK£0.29n/a2
Nov ’25UK£0.11
UK£0.35
+204.5%
16.0%UK£0.40UK£0.29n/a2
Oct ’25UK£0.11
UK£0.35
+214.2%
16.0%UK£0.40UK£0.29n/a2
Sep ’25UK£0.15
UK£0.35
+132.7%
16.0%UK£0.40UK£0.29n/a2
Aug ’25UK£0.13
UK£0.30
+130.9%
0.9%UK£0.30UK£0.30n/a2
Jul ’25UK£0.12
UK£0.30
+146.4%
0.9%UK£0.30UK£0.30n/a2
Jun ’25UK£0.14
UK£0.30
+122.8%
0.9%UK£0.30UK£0.30n/a2
May ’25UK£0.10
UK£0.30
+198.8%
0.8%UK£0.31UK£0.30n/a2
Apr ’25UK£0.086
UK£0.24
+179.1%
24.8%UK£0.30UK£0.18n/a2
Mar ’25UK£0.10
UK£0.24
+141.0%
24.8%UK£0.30UK£0.18n/a2
Feb ’25UK£0.11
UK£0.24
+125.9%
24.8%UK£0.30UK£0.18n/a2
Jan ’25UK£0.13
UK£0.43
+220.6%
59.8%UK£0.78UK£0.20n/a3
Dec ’24UK£0.13
UK£0.43
+215.8%
59.8%UK£0.78UK£0.20n/a3
Nov ’24UK£0.11
UK£0.26
+133.6%
22.9%UK£0.32UK£0.20UK£0.112
Oct ’24UK£0.15
UK£0.44
+191.7%
53.1%UK£0.77UK£0.24UK£0.113
Sep ’24UK£0.17
UK£0.44
+155.3%
53.1%UK£0.77UK£0.24UK£0.153
Aug ’24UK£0.18
UK£0.43
+133.1%
52.7%UK£0.74UK£0.24UK£0.133
Jul ’24UK£0.19
UK£0.48
+158.8%
41.1%UK£0.76UK£0.30UK£0.123
Jun ’24UK£0.23
UK£0.48
+107.3%
41.1%UK£0.76UK£0.30UK£0.143
May ’24UK£0.26
UK£0.54
+106.1%
31.2%UK£0.77UK£0.40UK£0.103
Apr ’24UK£0.26
UK£0.57
+117.6%
36.1%UK£0.86UK£0.40UK£0.0863
Mar ’24UK£0.30
UK£0.56
+85.8%
36.7%UK£0.86UK£0.40UK£0.103
Feb ’24UK£0.30
UK£0.56
+89.6%
36.7%UK£0.86UK£0.40UK£0.113
Jan ’24UK£0.33
UK£0.47
+45.0%
34.8%UK£0.80UK£0.37UK£0.135
Dec ’23UK£0.33
UK£0.54
+63.4%
32.4%UK£0.85UK£0.39UK£0.135
Nov ’23UK£0.29
UK£0.56
+90.2%
36.3%UK£0.93UK£0.40UK£0.115

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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