Lumentum Holdings Inc (LITE) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Lumentum Holdings Inc stock (LITE) is currently trading at $777.17. Lumentum Holdings Inc PE ratio is 232.46. Lumentum Holdings Inc PS ratio (Price-to-Sales) is 27.20. Analyst consensus price target for LITE is $708.57. WallStSmart rates LITE as Moderate Buy.
- LITE PE ratio analysis and historical PE chart
- LITE PS ratio (Price-to-Sales) history and trend
- LITE intrinsic value — DCF, Graham Number, EPV models
- LITE stock price prediction 2025 2026 2027 2028 2029 2030
- LITE fair value vs current price
- LITE insider transactions and insider buying
- Is LITE undervalued or overvalued?
- Lumentum Holdings Inc financial analysis — revenue, earnings, cash flow
- LITE Piotroski F-Score and Altman Z-Score
- LITE analyst price target and Smart Rating
Lumentum Holdings Inc
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LITE Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Lumentum Holdings Inc (LITE)
LITE trades 256% above its Graham fair value of $161.46, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Lumentum Holdings Inc (LITE) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, return on equity. Concerns around price/sales and price/book. Overall metrics suggest strong investment potential with favorable risk/reward.
Lumentum Holdings Inc (LITE) Key Strengths (6)
Growing significantly faster than its price suggests
Every $100 of shareholder equity generates $29 in profit
Revenue surging 65.50% year-over-year
Earnings per share surging 71.10% year-over-year
113.38% of shares held by major funds and institutions
Large-cap company with substantial market presence
Supporting Valuation Data
Lumentum Holdings Inc (LITE) Areas to Watch (4)
Very expensive at 27.2x annual revenue
Very expensive at 59.6x book value
Thin operating margins with cost pressures present
Decent profitability, keeps $12 per $100 revenue
Supporting Valuation Data
Lumentum Holdings Inc (LITE) Detailed Analysis Report
Overall Assessment
This company scores 69/100 in our Smart Analysis, earning a B- grade. Out of 10 metrics analyzed, 6 register as strengths (avg 9.8/10) while 4 fall into concern territory (avg 3.5/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Return on Equity, Revenue Growth. Valuation metrics including PEG Ratio (0.97) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 29.30%. Growth metrics are encouraging with Revenue Growth at 65.50%, EPS Growth at 71.10%.
The Bear Case
The primary concerns are Price/Sales, Price/Book, Operating Margin. Some valuation metrics including Price/Sales (27.20), Price/Book (59.57) suggest expensive pricing. Profitability pressure is visible in Operating Margin at 10.70%, Profit Margin at 11.90%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Price/Sales improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 29.30% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 65.50% strong but requiring continuation.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Return on Equity) and negatives (Price/Sales, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
LITE Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
LITE's Price-to-Sales ratio of 27.20x trades at a 18% premium to its historical average of 22.97x (86th percentile). The current valuation is 0% below its historical high of 27.2x set in Mar 2026, and 30% above its historical low of 20.9x in Mar 2026. Over the past 12 months, the PS ratio has expanded from ~23.8x, reflecting growing market expectations outpacing revenue growth.
Compare LITE with Competitors
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Data-driven financial summary for Lumentum Holdings Inc (LITE) · TECHNOLOGY › COMMUNICATION EQUIPMENT
The Big Picture
Lumentum Holdings Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 2.1B with 66% growth year-over-year. Profit margins of 11.9% are healthy, with room for further expansion as the business scales.
Key Findings
Revenue growing at 66% YoY, reaching 2.1B. This pace significantly outperforms most COMMUNICATION EQUIPMENT peers.
ROE of 29.3% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Margin expansion: can Lumentum Holdings Inc push profit margins above 15% as the business scales?
Growth sustainability: can Lumentum Holdings Inc maintain 66%+ revenue growth, or will competition slow it down?
Valuation compression risk at a P/E of 232.5x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor COMMUNICATION EQUIPMENT industry trends, competitive moves, and regulatory changes that could impact Lumentum Holdings Inc.
Bottom Line
Lumentum Holdings Inc offers an attractive blend of growth (66% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Lumentum Holdings Inc(LITE)
NASDAQ
TECHNOLOGY
COMMUNICATION EQUIPMENT
USA
Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, Asia-Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.