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:
We started the process of determining a valid price forecast for Lumentum Holdings Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Lumentum Holdings Inc ranked in the 98th percentile in terms of potential gain offered. Our DCF model suggests the stock is undervalued by 20403.83%; returns of such proportions should be viewed with some skepticism, though. As for the metrics that stood out in our discounted cash flow analysis of Lumentum Holdings Inc, consider:
Its compound free cash flow growth rate, as measured over the past 3.67 years, is 2.32% -- higher than 96.38% of stocks in our DCF forecasting set.
85% of the company's capital comes from equity, which is greater than 67.93% of stocks in our cash flow based forecasting set.
The weighted average cost of capital for the company is 8. This value is greater than just 20.64% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as LITE, try OKTA, MOMO, TRT, PRSP, and SNE.
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Citing positive channel checks, MKM Partners raises Lumentum's (LITE) price target by $11 to $107 and lifts Q4 revenue and EPS estimates.Analyst Michael Genovese says the checks showed "strong orders above its ability to supply in multiple places."Genovese sees optical strength from certain Datacom and Telecom products and Transport and Transmission...
Lumentum Holdings Inc. ("Lumentum") today announced it will showcase its wide-ranging portfolio of innovative solutions and technologies for commercial lasers and 3D sensing markets at LASER World of PHOTONICS CHINA 2020 in Shanghai, China at the Hongqiao National Exhibition and Convention Center at hall 8.1, stand 8.1A420 from July 3 – 5, 2020.