Gamma Communications PLC (GAMA) fair value: what the stock is really worth
As of Nov 9, 2026: fair value (intrinsic value) of Gamma Communications PLC stock £14.48, price £10.98, upside +31.9%, quality 68 out of 100. Rating: undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range £6.90 – £21.70 · fair‑value band £10.04 – £18.91 · the £10.98 price screens below the £14.48 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 8, 2026.
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Gamma Communications plc provides technology-based communications and software services to small, medium, and large-sized organizations in the United Kingdom, rest of Europe, and internationally.
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The company offers Gamma Enable that enables products and platforms link business and customers to the telephone network; Gamma Connect, which allows businesses to communicate by connecting people through voice, video and chat; Gamma SIP Trunks to connect site's on-premise telephone system directly into the Gamma network through an internet connection to carry and terminate calls across the public telephone network; connectivity and broadband, mobile and FireXchnage, and FUSION IoT solutions; Gamma Connect, a connectivity for voice and data; PhoneLine+, a landline replacement service using VoIP technology to deliver voice calls over the broadband network; CircleLoop, a cloud-based telephony product through web, desktop, and mobile applications; cloud-based communication solutions under the Horizon Cloud Phone System and iPECS names; cloud connect for Webex calling; and Microsoft Teams Phone.
It also provides Gamma Experience that blends products and designs enterprise-grade solution; Webex for Gamma; GammaUCX, a voice-integration platform; Amazon Connect, a contact centre platform; Horizon Contact, a cloud-based customer engagement platform; secure payments with PCI compliance; Cirrus Contact Centre, which combines technologies, such as CRM, WFO, analytics, and omni-channel; Gamma Contact for Service Providers, an omnichannel contact center solution; Gamma Secure, a managed cyber security solution; Cyber Maturity Assessment, Vulnerability Management, managed SOP, safeweb, security awareness, and Gamma Managed Detection and Response solutions; Gamma, enterprise managed, managed networks, and Clearing as a service solutions; and Gamma Toolbox, which provides tools and services for businesses.
The company was founded in 2002 and is headquartered in London, the United Kingdom.
Stock analysis
Gamma Communications PLC (GAMA) currently trades at £10.98, while our model-based Fair Value estimate is £14.48, implying the stock looks roughly 24% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of £17.11 per share, and 16 of the 24 models we run sit above the £10.98 price.
Bear case: the Dividend Discount group reads lowest at £2.73, and 8 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: £10.04 (bear) to £18.91 (bull), the price of £10.98 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 68/100 (solid quality), in the Communication Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Gamma Communications PLC reported revenue of £646M in FY2025 versus £448M in FY2021, a compound +9.6%/yr. Reported net income was £64.9M in FY2025, compounding +4.9%/yr from FY2021.
Key figures
Market cap £985M Small · P/E ratio 14.6 · P/S ratio 1.49 · EPS (TTM) £0.7500 · Dividend yield 1.9% · Net margin 10.5% · Return on equity 19.3% · Return on assets (EBIT) 16.5% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 7% below its 52-week high and 59% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 51% fair-value upside, at 32%, GAMA screens richer than that median.
Fair Value models
Bear£10.04Fair Value £14.48Bull£18.91
Price £10.98 · Upside +31.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (£0.4682 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.92/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+11.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.4%
Start year 2020 (pandemic). Over 10 years: +12.9% a year
Revenue growth 14 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.0%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+6.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+4.6%
Dividend (yield on the price)1.9%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.4.6% vs 13.9%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.19% → 16%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+3.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+2.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (UK: IMF forecast 2.3% a year to 2030, 3.3% from 2016 to 2025) that is about +0.8% a year for the price and +0.5% for the forecasts.
Compare Gamma Communications PLC with another stock
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Telecom Services · 234 stocks
Beats the industry median on 7/12 measures
A mixed picture versus its industry peers.
Valuation
Quality Score68 · Top 25%
Fair Value upside+32.0% · Above median
Profitability
Return on equity (12 months)19.3% · Top 25%
Return on assets10.5% · Top 25%
Net margin (12 months)10.5% · Above median
Operating margin (12 months)15.8% · Above median
Growth and dividend
Revenue growth (quarter YoY)4.2% · Below median
Dividend yield (12 months)1.9% · Below median
Valuation Multiplesvs Telecom Services median · lower = cheaper
P/E (12 months)14.6× · Cheaper than median
P/B2.55× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)1.49× · Pricier than median
Price / free cash flow (fiscal year)11.9× · Pricier than median
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Is Gamma Communications PLC (GAMA) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of £14.48 versus a price of £10.98, about +32% upside (undervalued).
What is the fair value of GAMA?
Our model-based fair value for Gamma Communications PLC is £14.48 (as of Nov 8, 2026), built from audited fundamentals. The current price: £10.98.
What is the quality score of GAMA?
Gamma Communications PLC has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Gamma Communications PLC (GAMA)?
Our model-based price target is the fair value of £14.48 (as of Nov 8, 2026) from 24 valuation models. Cautious scenario £10.04, optimistic scenario £18.91. It is a calculation from audited fundamentals, not an analyst target.
What is the Gamma Communications PLC stock forecast for 2026?
Our models put fair value at £14.48, about +32% upside versus a price of £10.98 (undervalued). Cautious scenario £10.04, optimistic scenario £18.91. The calculation is refreshed regularly with new filings.
What is the revenue of Gamma Communications PLC (GAMA)?
Gamma Communications PLC reported trailing-twelve-month revenue of about £659M (latest available figure, as of Nov 8, 2026).
Does Gamma Communications PLC pay a dividend?
Gamma Communications PLC currently shows a dividend yield of 1.86% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of Gamma Communications PLC (GAMA) and when is the ex-dividend date?
Gamma Communications PLC pays a dividend of £0.204 per share a year, a dividend yield of 1.9%. The last ex-dividend date was May 28, 2026. A dividend has been paid every year since at least 2015. The payout ratio is 27.2% of earnings. Free cash flow covers the dividend 4.55 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Gamma Communications PLC (GAMA)?
For today's price to be fair in a discounted-cash-flow model, Gamma Communications PLC would have to grow free cash flow by +3.1 % per year for five years (discount rate 11.3 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +10.4 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of GAMA use?
Our models discount Gamma Communications PLC at 11.3 %: a base by market capitalisation (small), damped by beta 0.85, country premium for United Kingdom. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Gamma Communications PLC that is +3.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.3 %) and the same formula as our fair value.
How much growth has Gamma Communications PLC (GAMA) delivered so far?
Over the past 5 years revenue at Gamma Communications PLC grew +10.4 % a year. The price currently implies free-cash-flow growth of +3.1 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Gamma Communications PLC (GAMA) growing?
The median revenue growth in the sector is +3.8 % a year. That is the yardstick for the growth priced into Gamma Communications PLC (+3.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Gamma Communications PLC (GAMA)?
The free-cash-flow yield on the price is 8.42 %: that much free cash flow Gamma Communications PLC produces per unit of market value. When it exceeds the discount rate of our models (11.3 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Gamma Communications PLC (GAMA)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Gamma Communications PLC it is £14.48 per share (as of Nov 8, 2026), against a price of £10.98. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is Gamma Communications PLC stock overvalued or undervalued in 2026?
As of Nov 8, 2026, GAMA trades below its calculated fair value: price £10.98, fair value £14.48, a gap of about +32% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of GAMA?
No. The price is what the market pays today (£10.98); the fair value is what the company's own numbers justify (£14.48). For Gamma Communications PLC the two are £3.50 per share apart. That gap is exactly why we show both numbers side by side.
How much is Gamma Communications PLC worth?
The market values Gamma Communications PLC at about £985M (market capitalisation, as of Nov 8, 2026). Per share that is £10.98; our models calculate a fair value of £14.48 per share.
What do the bullish and bearish scenarios say about GAMA?
Our models span a range for Gamma Communications PLC: cautious scenario £10.04, base £14.48, optimistic £18.91 per share (as of Nov 8, 2026, price £10.98). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of GAMA?
Gamma Communications PLC trades at a price-to-earnings ratio of 14.6 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £14.48 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 24.5. Other multiples: P/B 2.6, P/S 1.5, EV/EBITDA 7.9.
How solid is the balance sheet of Gamma Communications PLC (GAMA)?
Balance-sheet figures for Gamma Communications PLC (as of Nov 8, 2026): return on equity 19.3%. They feed the Quality Score of 68/100, which measures business quality independently of the share price.
How far is GAMA from its 52-week high?
Gamma Communications PLC trades at £10.98, about 7% below its 52-week high of £11.82 and 59% above the low of £6.90 (as of Nov 9, 2026). Distance from the high says nothing about value: that is what the fair value of £14.48 is for.
Which stocks are comparable to Gamma Communications PLC?
From the same area (Communication Services) we also value China Mobile Limited, Verizon Communications Inc, T-Mobile US, Inc, AT&T Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Gamma Communications PLC stock attractive at the current price?
The data as of Nov 8, 2026: price £10.98, calculated fair value £14.48 (+32%), Quality Score 68/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of GAMA calculated?
We run Gamma Communications PLC through 24 models from 7 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of £14.48 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Gamma Communications PLC currently trades 24% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Gamma Communications PLC (GAMA)?
The closing price on Nov 9, 2026 was £10.98. Our model-based fair value is £14.48, about +32% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Gamma Communications PLC right now?
Solid quality (68/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (£10.04 to £18.91) leaves room in how you read the outcome.
Where does the earnings growth of Gamma Communications PLC (GAMA) come from?
Earnings per share at Gamma Communications PLC grew +16.8 % a year from 2014 to 2025. Broken into its drivers: revenue per share +12.7 %, EBIT margin +6.1 %, tax rate −1.1 %, residual (interest, one-offs) −1.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Gamma Communications PLC
How large is the market capitalisation of Gamma Communications PLC (GAMA)?
The market capitalisation of Gamma Communications PLC is £985M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Gamma Communications PLC (GAMA)?
The price-to-sales ratio of Gamma Communications PLC is 1.49 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Gamma Communications PLC (GAMA)?
Earnings per share at Gamma Communications PLC are £0.7500 (price ÷ EPS = P/E 14.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Gamma Communications PLC (GAMA)?
The dividend yield of Gamma Communications PLC is 1.9% (payout 27.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Gamma Communications PLC (GAMA)?
The net margin of Gamma Communications PLC is 10.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Gamma Communications PLC (GAMA)?
The return on equity (ROE) of Gamma Communications PLC is 19.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Gamma Communications PLC (GAMA)?
On an EBIT basis the return on assets of Gamma Communications PLC is 16.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Gamma Communications PLC (GAMA)?
The operating margin of Gamma Communications PLC is 15.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Gamma Communications PLC (GAMA)?
Revenue at Gamma Communications PLC is growing +4.2% versus a year earlier (3y avg +10.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Gamma Communications PLC (GAMA)?
Earnings per share at Gamma Communications PLC are growing +17.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Gamma Communications PLC (GAMA) carry?
The net debt of Gamma Communications PLC is £26.9M (fiscal year 2025, ≈ 0.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 8, 2026