Assessing Lumine Group (TSXV:LMN) Valuation After Recent Insider Share Purchase

A recent insider purchase at Lumine Group (TSXV:LMN) is drawing attention, after Senior Officer David Sharpley bought 5,000 Subordinate Voting Shares at about CA$22.50 on March 31, 2026, lifting his direct holdings.

See our latest analysis for Lumine Group.

The insider purchase comes as Lumine Group’s share price has recently firmed, with a 1 month share price return of 7.2% after a weaker patch. This contrasts with a 1 year total shareholder return decline of 48.5% and a 3 year total shareholder return gain of 55.9%.

If this kind of insider buying has you thinking about other opportunities in software and infrastructure, it could be a good moment to check out 36 AI infrastructure stocks

With Lumine Group trading around CA$22.37, a price target of CA$44.25 and an estimated intrinsic discount of about 41%, the key question is simple: is the stock on sale, or is the market already pricing in future growth?

Price-to-Earnings of 34.8x: Is it justified?

Based on the preferred P/E multiple, Lumine Group trades on 34.8x earnings, which sits below its peer average yet above the broader North American Software industry.

The P/E ratio compares the current share price with earnings per share and gives you a quick sense of how much investors are paying for profits. For a software name like Lumine Group, where earnings and cash flows matter alongside growth expectations, this multiple becomes a simple gauge of how optimistic or cautious the market currently is.

Right now, the 34.8x P/E is lower than the peer average of 51.8x, which suggests the market is pricing Lumine Group at a discount to closer peers. However, that same 34.8x is higher than the wider North American Software industry average of 29.7x and above the estimated fair P/E of 26.1x, so the valuation could move closer to that lower fair level if sentiment changes.

Explore the SWS fair ratio for Lumine Group

Result: Price-to-Earnings of 34.8x (OVERVALUED)

However, there is still a risk that the current 34.8x P/E proves too rich if sentiment weakens or if Lumine’s recent share price recovery stalls.

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

Another View: What Does The Cash Flow Say?

While the 34.8x P/E hints at a rich price tag, the SWS DCF model tells a different story. On this view, Lumine Group at CA$22.37 is trading below an estimated future cash flow value of CA$37.97, which points to an undervalued share price.

That creates a clear tension for you to weigh, with earnings suggesting caution and cash flows suggesting potential value. You may wish to consider which lens feels more reliable for your style of investing.

Look into how the SWS DCF model arrives at its fair value.

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 8 high quality undervalued stocks. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

Next Steps

If this mix of signals leaves you uncertain, take it as a cue to review the numbers yourself, weigh the risks and rewards, and see what stands out in the 3 key rewards.

Looking for more investment ideas?

If Lumine Group has sharpened your focus, do not stop here. Broaden your watchlist now so you are not the one hearing about strong ideas late.

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.

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