Information Technology · Communications Equipment · US stock · price as of 22 Oct 2026
Key indicators
Price
$752.54
52-week range
$152.54 – $1,143.00
Market cap
$56.1B
P/E (trailing)
–
EV / EBITDA
107.9×
Free-cash-flow yield
0.5%
Dividend yield
–
Revenue (last 12 months)
$3.0B
Revenue growth (3y a year)
19.5%
Operating margin
17.4%
Return on invested capital
8.0%
Net debt / EBITDA
1.0×
Fair value
Fair value (average of valid models)$543.26 middle half of models $469 – $637
Versus priceOvervalued−28% to fair value
P/B multiple
$469.49
P/S multiple
$417.71
EV/EBITDA multiple
$523.76
EV/EBIT multiple
$409.66
EV/revenue multiple
$501.13
10-year DCF, EBITDA exit
$539.76
5-year DCF, EBITDA exit
$669.14
10-year DCF, revenue exit
$636.79
5-year DCF, revenue exit
$721.86
Model uncertainty
High
X-Ray Score
35/ 100 · High confidence · ahead of 12% of sector peers
Valuation6
Growth75
Profitability35
Financial health31
Dividends–
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Optical and photonic products are the core of Lumentum, which designs and manufactures lasers and the optical components that move data through communication networks. Its products go into cloud data centres, telecom networks and industrial and commercial laser applications. Customers include network equipment makers, cloud and telecom operators and industrial manufacturers. The business is organised around components for cloud and networking on one side and lasers for industrial uses on the other.
Over the last twelve months revenue reached $3.0 billion, earned by supplying optical components and lasers to equipment makers and network operators. Sales have grown at 19.5% a year across the last three years. The operating margin is 17.4%, the business earns 8% on the capital invested in it, and it carries net debt of 1.0 times EBITDA. No dividend is paid.
StocksXray gives Lumentum Holdings Inc. an X-Ray Score of 35 out of 100 (high confidence), ahead of 12% of the S&P 500 stocks in its sector. Its strongest lens is growth (75) and its weakest is valuation (6).
Our fair value (the average of the valid models) is $543.26 (range $469.49 to $636.79). At $752.54 the stock trades 39% above that value, so the label is "Overvalued" with high model uncertainty. Fair value is a range, not a price target.
XStocksXray
Lumentum Holdings Inc. (LITE)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2022
FY2023
FY2024
FY2025
FY2026
Now
Price
$77.82
$56.73
$50.92
$94.75
$816.98
$752.54
Market cap
$5.8B
$3.9B
$3.4B
$6.6B
$60.9B
$56.1B
P/E
29.0×
–
–
256.1×
–
–
EV / revenue
3.0×
1.1×
3.7×
5.0×
20.4×
18.8×
EV / EBITDA
16.8×
–
–
–
117.1×
107.9×
Price / free cash flow
15.7×
75.5×
–
–
203.1×
187.1×
Free-cash-flow yield
6.4%
1.3%
−3.2%
−1.6%
0.5%
0.5%
Price / book
3.1×
2.9×
3.6×
5.8×
13.1×
12.1×
Dividend yield
–
–
–
–
–
–
Fundamentals checklist ● 3 Good · ● 4 Average · ● 8 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−105.2%Good
Free-cash-flow yield0.5%Bad
Risk models
Altman Z score0.3×Bad
Piotroski F-Score5 of 9Bad
Growth
Free-cash-flow growth (3y)80.2%Good
Revenue growth (3y)19.5%Good
Growth consistency80%Bad
Balance sheet
Current ratio1.7×Average
Net debt / EBITDA1.0×Average
Interest cover24.1×Average
Valuation
Fair value vs price0.7×Bad
EBIT / EV yield0.9%Bad
Profitability
Return on invested capital8.0%Bad
Operating margin17.4%Average
Gross profitability17.2%Bad
Red flags
Heavy dilution — Share count up more than 5% year on year
Heavy dilution — Share count up more than 5% year on year
Heavy dilution — Share count up more than 5% year on year
Heavy dilution — Share count up more than 5% year on year
Heavy dilution — Share count up more than 5% year on year
XStocksXray
Lumentum Holdings Inc. (LITE)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY22
FY23
FY24
FY25
FY26
LTM
Revenue
1,713
1,767
1,359
1,645
3,014
3,014
Gross profit
789
569
252
460
1,256
1,256
Operating income
303
-116
-434
-180
525
525
Net income
199
-132
-547
26
-6,935
-6,935
Diluted EPS ($)
2.68
-1.93
-8.12
0.37
-92.96
-82.34
Free cash flow
368
51
-108
-105
300
300
Gross margin
46.0%
32.2%
18.5%
28.0%
41.7%
41.7%
Operating margin
17.7%
−6.5%
−31.9%
−10.9%
17.4%
17.4%
Net margin
11.6%
−7.4%
−40.2%
1.6%
−230.1%
−230.1%
Balance sheet
FY22
FY23
FY24
FY25
FY26
LTM
Total assets
4,162
4,632
3,932
4,219
7,308
7,308
Cash
1,290
859
437
521
2,044
2,044
Total debt
1,876
–
2,503
2,584
3,234
3,234
Equity
1,875
1,356
957
1,135
4,644
4,644
Dividend per share ($)
–
–
–
–
–
–
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value is the average of up to 15 valuation models, most of them anchored to the company's own multiples, so it stays near the price and should be read as a range, not a point. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.
