LITE's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 0.53 -- higher than only 16.74% of US-listed equities with positive expected earnings growth.
Over the past twelve months, LITE has reported earnings growth of 7,750%, putting it ahead of 99.82% of US stocks in our set.
In terms of volatility of its share price, LITE is more volatile than only 4.63% of stocks we're observing.
If you're looking for stocks that are quantitatively similar to Lumentum Holdings Inc, a group of peers worth examining would be GKOS, MXL, PXLW, QTWO, and AAOI.
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:
Below please find a table outlining a discounted cash flow forecast for LITE, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Lumentum Holdings Inc ranked in the 98th percentile in terms of potential gain offered. Our DCF analysis implies the stock could yield a return of 21762.67% if fairly valued; such returns are always unlikely, though, so further investigation is likely warranted. The most interesting components of our discounted cash flow analysis for Lumentum Holdings Inc ended up being:
Its compound free cash flow growth rate, as measured over the past 3.98 years, is 2.14% -- higher than 95.86% of stocks in our DCF forecasting set.
The weighted average cost of capital for the company is 8. This value is greater than just 15.18% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MOMO, PRSP, SEDG, SNE, and QCCO 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.
In an increasingly connected world, industrial lasers and photonics hold a lot of promise. Modern networking systems and devices make use of these technologies, and Lumentum (NASDAQ: LITE) and II-VI (NASDAQ: IIVI) have done well in recent years as a result -- even though demand from some customers may be drying up this year. As technology component manufacturers, Lumentum and II-VI have highly cyclical businesses that are sensitive to customer demand.
I wrote an article about Lumentum Holdings (LITE) just over a month ago as the company was getting ready to release its second quarter earnings results. I exclaimed in the article that I was bullish on the stock for the long term, but I was worried about the overbought status...
Rick Pendergraft on Seeking Alpha | September 14, 2020
Lumentum Holdings Inc. ("Lumentum") today announced its participation at key industry events over the next couple months. Lumentum will present on technological advancements and display its broad portfolio of advanced products and solutions addressing the 3D sensing and laser micromachining and macromaterials processing markets.
Lumentum Holdings Inc. ("Lumentum") today announced that management is scheduled to participate in the Jefferies Virtual Semiconductor, IT Hardware & Communications Infrastructure Summit, on September 2, 2020.