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Gem Diamonds (LSE:GEMD) GF Value : £0.30 (As of Jun. 03, 2024)


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What is Gem Diamonds GF Value?

The GF Value represents the current intrinsic value of a stock derived from our exclusive method. The GF Value Line on our summary page gives an overview of the fair value that the stock should be traded at. It is calculated based on three factors:

  1. Historical multiples (PE Ratio, PS Ratio, PB Ratio and Price-to-Free-Cash-Flow) that the stock has traded at.
  2. GuruFocus adjustment factor based on the company’s past returns and growth.
  3. Future estimates of the business performance.

We believe the GF Value Line is the fair value that the stock should be traded at. The stock price will most likely fluctuate around the GF Value Line. If the stock price is significantly above the GF Value Line, it is overvalued and its future return is likely to be poor. On the other hand, if it is significantly below the GF Value Line, its future return will likely be higher.

Please note, "Possible Value Trap, Think Twice" is for the companies that look very undervalued, but either in the long term trend of business decline, or in financial distress.

As of today (2024-06-03), Gem Diamonds's share price is £0.1355. Gem Diamonds's GF Value is £0.30. Therefore, Gem Diamonds's Price-to-GF-Value for today is 0.45.

Based on the relationship between the current stock price and the GF Value, GuruFocus believes Gem Diamonds is Possible Value Trap, Think Twice.


Gem Diamonds  (LSE:GEMD) GF Value Explanation

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

Posssible Evaluations All-in-One Screener Examples (2)
Possible Value Trap, Think Twice (1)Predictable Companies that possibly be Value Traps
Significantly OvervaluedPredictable Companies which are Significantly Overvalued
Modestly OvervaluedPredictable Companies which are Modestly Overvalued
Fairly ValuedPredictable High Quality Companies which are Fairly Valued
Modestly Undervalued (3)Predictable High Quality Companies which are Modestly Undervalued
Significantly Undervalued (3)Predictable High Quality Companies which are Significantly Undervalued

(1) "Possible Value Trap, Think Twice" is for the companies that look very undervalued, but either in the long term trend of business decline, or in financial distress.

(2) These are some simple examples. You can access our GF Valuation filter under All-in-One Screener’s Fundamental tab, and Price-to-GF-Value filter under Valuation Ratio tab and set your own criteria.

(3) There is only a sufficient margin of safety when the stock is undervalued.

Gem Diamonds's Price-to-GF-Value for today is calculated as

Price-to-GF-Value=Share Price/GF Value
=0.1355/0.30
=0.45

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Gem Diamonds GF Value Related Terms

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Gem Diamonds (LSE:GEMD) Business Description

Traded in Other Exchanges
Address
2 Eaton Gate, London, GBR, SW1W 9BJ
Gem Diamonds Ltd is a United Kingdom-based company engaged in the exploration and development of diamond mines. The company's geographical segments include Lesotho (diamond mining activities); Belgium (sales, marketing, and manufacturing of diamonds); and BVI, RSA, the UK, and Cyprus (technical and administrative services). It generates maximum revenue from the Belgium region. Its projects include Letseng Diamond mine and Ghaghoo Diamond mine. The company's revenue is derived from mining activities, polished manufacturing margins, and diamond analysis and manufacturing services.

Gem Diamonds (LSE:GEMD) Headlines

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