Gamma Communications Fair Value
GA
The fair market value of GAMA.L stock is 1274.51 GBX. Relative to the market price of 1706 GBX Gamma Communications PLC is overvalued by 25.3%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Gamma Communications Valuation
Current GAMA.L share ticker price is 1706 GBX.
The fair value level of 1274.51 GBX can be considered as an effective entry point for long-term investors to start investing in GAMA.L stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 25% higher its fair value
Current price is 38% higher its minimum value
Current price is 5% higher its maximum value
Market price:
GAMA.L stock is greatly overvalued
It means the current price may concern as a High Risk Entry Point
Gamma Communications PLC Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
29.64
2
Median P/E over 5 years
23.22
3
Minimum P/E over 5 years
19.21
4
Earning per share (last 12 months)
0.55 GBP
Maximum value
1
x
4
=
1 626.85 GBX
Fair value
2
x
4
=
1 274.51 GBX
Minimum value
3
x
4
=
1 054.42 GBX
Gamma Communications PLC price metrics
7.7
Annual return (geometric mean)
30.7
Risk (standard deviation) of returns
β
0.9
Beta (volatility compared to market)