With a one year PEG ratio of 0.6, Lumentum Holdings Inc is expected to have a higher PEG ratio (a measure of how expensive a stock is relative to its expected earnings growth) than merely 17.22% of US stocks.
In terms of twelve month growth in earnings before interest and taxes, Lumentum Holdings Inc is reporting a growth rate of 7,750%; that's higher than 99.82% of US stocks.
The volatility of Lumentum Holdings Inc's share price is greater than that of only 4.86% US stocks with at least 200 days of trading history.
Stocks that are quantitatively similar to LITE, based on their financial statements, market capitalization, and price volatility, are 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:
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 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. 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 95.76% of stocks in our DCF forecasting set.
The weighted average cost of capital for the company is 8. This value is greater than only 16.81% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Lumentum Holdings Inc? See MOMO, PRSP, SNE, SEDG, and DCMYY.
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 (NASDAQ:LITE) is scheduled to announce Q4 earnings results on Monday, August 10th, after market close.The consensus EPS Estimate is $0.83 (-9.8% Y/Y) and the consensus Revenue Estimate is $349.73M (-13.6% Y/Y).Over the last 2 years, LITE has beaten EPS estimates 88% of the time and has beaten revenue estimates...
On CNBC's "Mad Money Lightning Round," Jim Cramer said that Sarepta Therapeutics Inc (NASDAQ: SRPT ) is good and he would own it, but he prefers Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX ). Cramer would be careful with Lumentum Holdings Inc (NASDAQ: LITE ) because … Full story available on Benzinga.com