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What recent performance says about Lumine Group

Lumine Group (TSXV:LMN) has drawn attention after a series of declines, with the share price down about 2% over the past week, 12% over the past month, and 31% over the past 3 months.

See our latest analysis for Lumine Group.

Set against a CA$24.11 latest share price, Lumine Group's recent declines, including a 30 day share price return of 11.85% and a 1 year total shareholder return of 36.55%, suggest fading momentum as investors reassess growth prospects and risk.

If Lumine Group's recent pullback has you reassessing your watchlist, this could be a good time to broaden your search with high growth tech and AI stocks.

With Lumine Group now trading at CA$24.11 and showing an estimated intrinsic discount of about 19%, the key question is whether the recent weakness signals undervaluation or whether the market already reflects its future growth potential.

Price-to-Earnings of 45.8x: Is it justified?

Lumine Group trades on a P/E of 45.8x at CA$24.11, which screens as expensive when you line it up against both peers and an estimated fair level.

The P/E ratio compares the current share price to earnings per share, so a higher multiple usually means investors are paying more for each dollar of current profit. For software names like Lumine Group, elevated P/E levels are often linked to expectations around future revenue expansion, profitability and how durable those earnings might be.

Here, the current 45.8x P/E sits slightly above the Canadian Software industry average of 45.2x and above the peer group average of 42.5x. It also stands well above the estimated fair P/E of 18.2x. This is a level our models suggest the market could eventually lean toward if expectations on earnings reset. Put together, the current valuation points to investors paying a premium multiple that is high relative to sector norms and to that fair ratio estimate.

Explore the SWS fair ratio for Lumine Group

Result: Price-to-Earnings of 45.8x (OVERVALUED)

However, you should weigh risks such as the recent 1-year total shareholder return of 36.55% turning negative and annual net income growth of 17.52% reversing.

Find out about the key risks to this Lumine Group narrative.

Another view using our DCF model

While the current 45.8x P/E ratio screens as expensive, our DCF model points in a different direction. At CA$24.11, Lumine Group is trading about 18.7% below an estimated fair value of CA$29.66, which suggests the market price and earnings multiple are telling different stories.



For you, that gap raises a practical question: is the premium P/E capturing risks that the cash flow model is not, or is the DCF hinting at upside that sentiment is currently ignoring?

Look into how the SWS DCF model arrives at its fair value.LMN Discounted Cash Flow as at Jan 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Lumine Group 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 884 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.

Build Your Own Lumine Group Narrative

If you see the numbers differently or prefer to rely on your own research, you can build a custom view in just a few minutes with Do it your way.

A great starting point for your Lumine Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

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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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