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 model suggests the stock is undervalued by 25870%; returns of such proportions should be viewed with some skepticism, though. The most interesting components of our discounted cash flow analysis for Lumentum Holdings Inc ended up being:
The company's compound free cash flow growth rate over the past 3.67 years comes in at 2.32%; that's greater than 96.6% of US stocks we're applying DCF forecasting to.
The weighted average cost of capital for the company is 7. This value is greater than only 19.15% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
OKTA, BWMX, SCWX, SEDG, and PRSP 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.