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If you are wondering whether Lumine Group is starting to look interesting at today’s price, you are not alone in asking what a fair value for the stock really looks like. The share price closed at CA$24.11, with returns of a 1.5% decline over 7 days, an 11.8% decline over 30 days, a 10.7% decline year to date and a 36.6% decline over the past year. This naturally raises questions about how expectations and perceived risk are being reset. Recent coverage has focused on how Lumine Group fits within the listed software sector and how investors weigh its recurring revenue profile against the current share price. This context helps explain why some shareholders are reassessing whether the recent share price performance lines up with the company’s underlying fundamentals. Lumine Group currently has a valuation score of 2 out of 6, which means it screens as undervalued on 2 of Simply Wall St’s 6 valuation checks. We will look at what that implies across different valuation methods before finishing with a broader framework that can help you judge the valuation for yourself.

Lumine Group scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Lumine Group Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow model estimates what a business could be worth today by projecting its future cash flows and then discounting those back to a present value.

For Lumine Group, the model used is a 2 Stage Free Cash Flow to Equity approach based on cash flow projections. The latest twelve month Free Cash Flow is $216.63 million, and analyst inputs extend to 2027, with Simply Wall St extrapolating further out to 2035. Within these projections, Free Cash Flow in 2027 is set at $254.50 million, and by 2035 the extrapolated figure is $345.92 million. All figures are expressed in dollars and discounted back to today.

Combining these discounted cash flows gives an estimated intrinsic value of CA$29.70 per share, compared with the current share price of CA$24.11. That implies an intrinsic discount of 18.8%, which screens as undervalued under this model.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Lumine Group is undervalued by 18.8%. Track this in your watchlist or portfolio, or discover 886 more undervalued stocks based on cash flows.LMN Discounted Cash Flow as at Jan 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Lumine Group.

Story Continues

Approach 2: Lumine Group Price vs Earnings

For profitable companies, the P/E ratio is a useful yardstick because it tells you how much you are paying for each dollar of current earnings. It connects the share price directly to the business outcome that most investors focus on, earnings per share.

What counts as a normal or fair P/E ratio usually reflects two things: how quickly earnings are expected to grow and how much risk investors perceive in those earnings. Higher expected growth or lower perceived risk can justify a higher P/E, while slower growth or higher risk often point to a lower multiple.

Lumine Group currently trades on a P/E of 45.78x. This sits slightly above the Software industry average of 45.17x and above the peer group average of 42.40x. Simply Wall St also provides a Fair Ratio of 18.18x, a proprietary estimate of what a reasonable P/E might be after weighing factors like earnings growth, profit margins, industry, market cap and specific risk profile. This tailored Fair Ratio can be more informative than a simple peer or industry comparison because it is calibrated to the company’s own characteristics rather than broad group averages.

Comparing Lumine Group’s current P/E of 45.78x with the Fair Ratio of 18.18x, the shares screen as overvalued on this metric.

Result: OVERVALUEDTSXV:LMN P/E Ratio as at Jan 2026

P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1424 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Lumine Group Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These let you attach your own story about Lumine Group to the numbers you see, including your view of fair value and what you expect for future revenue, earnings and margins.

A Narrative links three pieces into one clear picture: the company’s story, a financial forecast that flows from that story, and the fair value estimate that follows from those assumptions.

On Simply Wall St’s Community page, where millions of investors share ideas, Narratives are an easy tool you can use without complex modelling to compare your fair value with the current share price and decide for yourself whether Lumine Group looks attractive, fairly priced or expensive.

Because each Narrative updates when fresh information appears, such as news or earnings releases, you can quickly see how your fair value might change over time. You might find that one Lumine Group Narrative assumes a much higher fair value than another that incorporates more conservative revenue, margin and risk assumptions.

Do you think there's more to the story for Lumine Group? Head over to our Community to see what others are saying!TSXV:LMN 1-Year Stock Price Chart

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 LMN.V.

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