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 47.15 is considered Overvalued compared with the five-year average of 24.85. The fair price of Lumentum Holdings Inc (LITE) is between 95.87 to 224.35 according to relative valuation methord. Compared to the current price of 302.98 USD , Lumentum Holdings Inc is Overvalued By 35.05%.
Relative Value
Fair Zone
95.87-224.35
Current Price：302.98
35.05%
Overvalued
50.32
PE
1Y
3Y
5Y
Trailing
Forward
29.56
EV/EBITDA
Lumentum Holdings Inc. (LITE) has a current EV/EBITDA of 29.56. The 5-year average EV/EBITDA is 16.17. The thresholds are as follows: Strongly Undervalued below 0.76, Undervalued between 0.76 and 8.47, Fairly Valued between 23.87 and 8.47, Overvalued between 23.87 and 31.57, and Strongly Overvalued above 31.57. The current Forward EV/EBITDA of 29.56 falls within the Overvalued range.
36.93
EV/EBIT
Lumentum Holdings Inc. (LITE) has a current EV/EBIT of 36.93. The 5-year average EV/EBIT is 32.16. The thresholds are as follows: Strongly Undervalued below -27.11, Undervalued between -27.11 and 2.52, Fairly Valued between 61.79 and 2.52, Overvalued between 61.79 and 91.43, and Strongly Overvalued above 91.43. The current Forward EV/EBIT of 36.93 falls within the Historic Trend Line -Fairly Valued range.
7.42
PS
Lumentum Holdings Inc. (LITE) has a current PS of 7.42. The 5-year average PS is 3.01. The thresholds are as follows: Strongly Undervalued below 1.24, Undervalued between 1.24 and 2.12, Fairly Valued between 3.89 and 2.12, Overvalued between 3.89 and 4.77, and Strongly Overvalued above 4.77. The current Forward PS of 7.42 falls within the Strongly Overvalued range.
38.82
P/OCF
Lumentum Holdings Inc. (LITE) has a current P/OCF of 38.82. The 5-year average P/OCF is 13.57. The thresholds are as follows: Strongly Undervalued below 3.19, Undervalued between 3.19 and 8.38, Fairly Valued between 18.76 and 8.38, Overvalued between 18.76 and 23.95, and Strongly Overvalued above 23.95. The current Forward P/OCF of 38.82 falls within the Strongly Overvalued range.
55.97
P/FCF
Lumentum Holdings Inc. (LITE) has a current P/FCF of 55.97. The 5-year average P/FCF is 43.92. The thresholds are as follows: Strongly Undervalued below -230.86, Undervalued between -230.86 and -93.47, Fairly Valued between 181.31 and -93.47, Overvalued between 181.31 and 318.70, and Strongly Overvalued above 318.70. The current Forward P/FCF of 55.97 falls within the Historic Trend Line -Fairly Valued range.
Lumentum Holdings Inc (LITE) has a current Price-to-Book (P/B) ratio of 27.51. Compared to its 3-year average P/B ratio of 4.92 , the current P/B ratio is approximately 459.61% higher. Relative to its 5-year average P/B ratio of 4.23, the current P/B ratio is about 549.79% higher. Lumentum Holdings Inc (LITE) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of -0.26%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.15% , the current FCF yield is about -100.00% lower.
29.77
P/B
Median3y
4.92
Median5y
4.23
-0.41
FCF Yield
Median3y
-0.26
Median5y
3.15
Competitors Valuation Multiple
The average P/S ratio for LITE's competitors is , providing a benchmark for relative valuation. Lumentum Holdings Inc Corp (LITE) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 58.44%, this premium appears sustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of LITE increased by 290.53% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 48.35 to 210.47.
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.
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