Lumentum Holdings Inc. manufactures and sells optical and photonic products for optical networking and commercial laser customers worldwide. It operates in two segments, Optical Communications and Commercial Lasers. The company was established in 2015 and is based in Milpitas, California.
LITE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Lumentum Holdings Inc. To summarize, we found that Lumentum Holdings Inc ranked in the 97th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. In terms of the factors that were most noteworthy in this DCF analysis for LITE, they are:
The company's compound free cash flow growth rate over the past 4.17 years comes in at 2%; that's greater than 95.02% of US stocks we're applying DCF forecasting to.
The weighted average cost of capital for the company is 9. This value is greater than merely 16.36% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MOMO, SNE, ASX, QCCO, and OKTA can be thought of as valuation peers to LITE, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.
Lumentum Holdings has entered into an agreement to snap up Coherent in a cash and stock deal valued at $5.7 billion. Coherent shares rose almost 2% in Wednesday’s pre-market session after closing 30% higher on Tuesday. The deal is expected to help Lumentum (LITE) enhance its footprint in the more than $10 billion market for lasers and photonics outside of communications and 3D sensing. Under the terms of the proposed transaction, which has been unanimously approved by the boards of directors of both companies, Coherent stockholders will get $100 per share in cash and 1.1851 shares of Lumentum common stock for each Coherent share they own.
NEW YORK , Jan. 20, 2021 /PRNewswire/ -- Halper Sadeh LLP, a global investor rights law firm, announces it is investigating the following companies: Coherent, Inc. (NASDAQ: COHR ) concerning potential violations of the federal securities laws and/or breaches of fiduciary duties relating to its sale to Lumentum Holdings Inc. Under the terms of the merger agreement, Coherent shareholders will receive $100.00 per share in cash and 1.1851 shares of Lumentum common stock for each Coherent share they own. At closing, Coherent shareholders are expected to … Full story available on Benzinga.com
Moody's Investors Service placed the credit ratings of Coherent Holding GmbH ("Coherent") on review for downgrade, including the Ba1 Corporate Family Rating ("CFR") and the Ba1 senior secured credit facilities rating. This rating action follows Lumentum Holdings Inc.'s ("Lumentum") and Coherent's announcement that they have entered into an agreement under which Lumentum will acquire Coherent in a cash and stock transaction valued at $5.7 billion.