LITE PE Ratio & Valuation,Is LITE Overvalued

LITE Relative Valuation

LITE's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, LITE is overvalued; if below, it's undervalued.

Historical Valuation

Lumentum Holdings Inc (LITE) is now in the Overvalued zone, suggesting that its current forward PE ratio of 59.32 is considered Overvalued compared with the five-year average of 25.49. The fair price of Lumentum Holdings Inc (LITE) is between 94.20 to 215.86 according to relative valuation methord. Compared to the current price of 347.23 USD , Lumentum Holdings Inc is Overvalued By 60.86%.

Relative Value

Fair Zone

94.20-215.86

Current Price：347.23

60.86%

Overvalued

59.32

36.07

EV/EBITDA

Lumentum Holdings Inc. (LITE) has a current EV/EBITDA of 36.07. The 5-year average EV/EBITDA is 16.55. The thresholds are as follows: Strongly Undervalued below 0.64, Undervalued between 0.64 and 8.59, Fairly Valued between 24.51 and 8.59, Overvalued between 24.51 and 32.47, and Strongly Overvalued above 32.47. The current Forward EV/EBITDA of 36.07 falls within the Strongly Overvalued range.

46.23

EV/EBIT

Lumentum Holdings Inc. (LITE) has a current EV/EBIT of 46.23. The 5-year average EV/EBIT is 32.69. The thresholds are as follows: Strongly Undervalued below -26.44, Undervalued between -26.44 and 3.13, Fairly Valued between 62.26 and 3.13, Overvalued between 62.26 and 91.82, and Strongly Overvalued above 91.82. The current Forward EV/EBIT of 46.23 falls within the Historic Trend Line -Fairly Valued range.

9.46

Lumentum Holdings Inc. (LITE) has a current PS of 9.46. The 5-year average PS is 3.08. The thresholds are as follows: Strongly Undervalued below 0.80, Undervalued between 0.80 and 1.94, Fairly Valued between 4.23 and 1.94, Overvalued between 4.23 and 5.37, and Strongly Overvalued above 5.37. The current Forward PS of 9.46 falls within the Strongly Overvalued range.

49.47

P/OCF

Lumentum Holdings Inc. (LITE) has a current P/OCF of 49.47. The 5-year average P/OCF is 14.11. The thresholds are as follows: Strongly Undervalued below 0.90, Undervalued between 0.90 and 7.50, Fairly Valued between 20.71 and 7.50, Overvalued between 20.71 and 27.32, and Strongly Overvalued above 27.32. The current Forward P/OCF of 49.47 falls within the Strongly Overvalued range.

71.32

P/FCF

Lumentum Holdings Inc. (LITE) has a current P/FCF of 71.32. The 5-year average P/FCF is 44.78. The thresholds are as follows: Strongly Undervalued below -230.17, Undervalued between -230.17 and -92.69, Fairly Valued between 182.26 and -92.69, Overvalued between 182.26 and 319.74, and Strongly Overvalued above 319.74. The current Forward P/FCF of 71.32 falls within the Historic Trend Line -Fairly Valued range.

Lumentum Holdings Inc (LITE) has a current Price-to-Book (P/B) ratio of 35.06. Compared to its 3-year average P/B ratio of 5.70 , the current P/B ratio is approximately 514.92% higher. Relative to its 5-year average P/B ratio of 4.67, the current P/B ratio is about 650.06% higher. Lumentum Holdings Inc (LITE) has a Forward Free Cash Flow (FCF) yield of approximately -0.32%. Compared to its 3-year average FCF yield of -0.51%, the current FCF yield is approximately -37.23% lower. Relative to its 5-year average FCF yield of 3.05% , the current FCF yield is about -110.61% lower.

35.06

P/B

Median3y

5.70

Median5y

4.67

-0.32

FCF Yield

Median3y

-0.51

Median5y

3.05

Competitors Valuation Multiple

The average P/S ratio for LITE's competitors is 3.87, providing a benchmark for relative valuation. Lumentum Holdings Inc Corp (LITE) exhibits a P/S ratio of 9.46, which is 144.09% above the industry average. Given its robust revenue growth of 58.44%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of LITE increased by 361.89% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 48.92 to 247.87.

The secondary factor is the Revenue Growth, contributed 58.44%to the performance.

Overall, the performance of LITE in the past 1 year is driven by P/E Change. Which is more unsustainable.

58.44%

336.90M → 533.80M

Revenue Growth

-103.23%

-24.46 → 0.79

Margin Expansion

406.68%

48.92 → 247.87

P/E Change

361.89%

85.06 → 392.88

Mkt Cap Growth

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Frequently Asked Questions

Is Lumentum Holdings Inc (LITE) currently overvalued or undervalued?

What is Lumentum Holdings Inc (LITE) fair value?

LITE's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Lumentum Holdings Inc (LITE) is between 94.20 to 215.86 according to relative valuation methord.

How does LITE's valuation metrics compare to the industry average?

What is the current P/B ratio for Lumentum Holdings Inc (LITE) as of Jan 08 2026?

As of Jan 08 2026, Lumentum Holdings Inc (LITE) has a P/B ratio of 35.06. This indicates that the market values LITE at 35.06 times its book value.

What is the current FCF Yield for Lumentum Holdings Inc (LITE) as of Jan 08 2026?

As of Jan 08 2026, Lumentum Holdings Inc (LITE) has a FCF Yield of -0.32%. This means that for every dollar of Lumentum Holdings Inc’s market capitalization, the company generates -0.32 cents in free cash flow.

What is the current Forward P/E ratio for Lumentum Holdings Inc (LITE) as of Jan 08 2026?

As of Jan 08 2026, Lumentum Holdings Inc (LITE) has a Forward P/E ratio of 59.32. This means the market is willing to pay $59.32 for every dollar of Lumentum Holdings Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Lumentum Holdings Inc (LITE) as of Jan 08 2026?

As of Jan 08 2026, Lumentum Holdings Inc (LITE) has a Forward P/S ratio of 9.46. This means the market is valuing LITE at $9.46 for every dollar of expected revenue over the next 12 months.

LITE Valuation