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Lumentum Holdings Inc.

LITE Technology Communication Equipment

Lumentum Holdings Inc.’s revenue for fiscal 2026 (year ended June 2026) was $3.0 billion, up 83.2% from fiscal 2025.

Revenue
+136.5%
EPS
+6,391.8%
Free cash flow
+337.7%
Total debt
−56.8%

Quarter to September 2026, against a year earlier

537.22 27.52 +5.40%
Market cap
$46.2B
P/E
0.0×
Fwd P/E
39.4×
Dividend yield
—
F-score
5/9
Altman Z
13.85
Beneish M
−6.57
Dividend safety
n/a
Overview Business Profile Earnings & Analysis
Financials
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Lumentum Holdings Inc. (LITE) valuation and DCF model

What the price implies · reverse DCF

At $537.22 the price implies free cash flow after share-based pay growing 45.1% a year for ten years.

The industry’s median company is priced for 15.2%.

In June 2018 the price assumed 27.2% a year; Lumentum Holdings Inc. went on to grow free cash flow after share-based pay 6.1% a year to FY2026.

Price implies
45.1%
Industry median implies
15.2%

The headline discounts the last twelve months’ free cash flow after share-based pay at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
45.1% a year for ten years
$537.22
today’s price
Its base case
5.0% a year for five years, then 3.0%
$34.02
93.7% below today’s price

Both are growth in free cash flow after share-based pay, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Lumentum Holdings Inc.’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Cash flow to equity
the four quarters to September 2026, from the 10-Q and 10-K filings, before share-based pay

Yearly growth in cash flow. It usually slows as the company matures.

Today’s price implies free cash flow after share-based pay growing 45.1% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

Diluted shares outstanding. Net debt, under Advanced inputs, is taken off before dividing.

Advanced inputs
Free cash flow Revenue and margin
negative is net cash
new shares the cash flow does not pay for

Against Lumentum Holdings Inc.’s own cost of capital: risk-free 4.3% + beta 1.63 × equity premium 4.5% = 11.6% cost of equity; weighted, 11.6%.

Use 11.6%
Equity value $3.15b ▼ below market cap $49.73b
Base case value per share $34.02 equity value ÷ 92.58m shares
Current price $537.22 market price per share
Below today’s price 93.7% downside at the base case’s assumptions

How we got there$1.15b 10 years of cash to equity+$1.42b terminal value+$580.00m net cash=$3.15b equity value÷92.58m shares=$34.02 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Communication Equipment).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E — 78.60× 78.60× — 29.86× —
P/FCF 118.47× 80.96× 59.27× 100% above 21.71× 446% above
P/B 10.47× 7.30× 5.27× 99% above 1.72× 510% above
EV/EBITDA 40.70× 51.67× 33.96× 20% above 14.04× 190% above
EV/Sales 12.64× 9.03× 5.97× 112% above 1.76× 617% above
P/E P/FCF P/B EV/EBITDA EV/Sales
16.29×98.05×179.82×261.58×10Y avg 78.60×20182020202120222025

P/E has no reading today; its 10-year average is 78.60×.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.