Lucara Diamond Valuation

Is LUC 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-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 Ratio1x
SalesUS$165.68m
Market CapUS$157.53m

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.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.3x
PROF B ProfilGruppen
0.3xn/aSEK 732.5m
RROS Rottneros
0.5x5.4%SEK 1.4b
VISC Gruvaktiebolaget Viscaria
7.4x64.7%SEK 2.4b
ARPL Arla Plast
0.8x12.3%SEK 1.0b
LUC Lucara Diamond
1x1.1%SEK 220.0m

Price-To-Sales vs Peers: LUC is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (2.3x).


Price to Sales Ratio vs Industry

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

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
0.5x0.8%US$4.47b
GRNG Gränges
0.6x13.0%US$1.14b
PROF B ProfilGruppen
0.3xn/aUS$66.22m
DRIL Drillcon
0.5xn/aUS$18.10m
LUC 1.0xIndustry Avg. 0.7xNo. of Companies6PS02.44.87.29.612+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LUC is expensive based on its Price-To-Sales Ratio (1x) compared to the European Metals and Mining industry average (0.7x).


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 Ratio1x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: LUC is expensive based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).


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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