Lumentum Holdings Inc. — Communication Equipment. Scored on the same transparent 7-signal model behind the daily rankings.
★
LITE
Lumentum Holdings Inc. · Communication Equipment
FCF$114mC
Rev+21.0%A-
D/E1.11C
P/E124.9xD
PEG0.63A-
52.4Score
$785.77$61.1B
1Y Target$1,111Analyst consensus · 25 analysts
5Y Target$1,627Compound horizon
10Y Target$2,414Long-dated conviction
FCF$114mTTMC
FCF $114m — modest; watch for margin expansion
Rev+21.0%TTM YoYA-
Revenue +21.0% — strong growth, well above S&P median (~7%)
D/E1.11C
D/E 1.11 — more levered than most Technology peers (≈90th pctile)
P/E124.9xD
P/E 124.9 — most expensive decile in Technology (≈95th pctile)
PEG0.63A-
PEG 0.63 — strong; Lynch's preferred zone
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 52.4
Quality0.40
Growth0.69
Value0.53
Why this score
Diluting shareholders
Entry · Margin of safety
52-week rangeNear 52-week high
28% off the 12-month high
vs DCF fair value3079% aboveest. fair value ~$25
Quality signals · context only
Gross profitability19% · C+gross profit ÷ total assets (Novy-Marx)
ROIC2.0% · Creturn on invested capital — not score-weighted
Why now
Communication Equipment · market cap $61.1b. Down 28% from 52-week high of $1085.68 — deep drawdown territory. Revenue growing +21%, comfortably above the S&P median. PEG 0.63 — paying under fair value for the growth rate. 25 sell-side analysts rate this a Buy with a mean 1-yr target of $1,111 (implying +41% upside).
Moat
Net margin 18% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 15% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. $61.1b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.
Risk
Trailing P/E 124.9x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Beta 1.48 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. P/S 24.6x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Horizon
1-3 yr $1,111 (25-analyst consensus) — fundamentals + valuation re-rating. 5 yr $1,627 at ~16% CAGR — compounding case rests on the competitive position widening. 10 yr $2,414 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Position sizing · LITE
$
%
%
Shares to buy
2
Position size
$1,572
3.1% of portfolio
Stop price
$589.33
25% below $785.77
$ at risk if stopped
$392.88
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
Lumentum Holdings Inc. (LITE): score, valuation & FAQ
Lumentum Holdings Inc. (LITE) is a Communication Equipment company that scores 52.4 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are Rev (A-) and PEG (A-), while P/E (D) rate weaker. On valuation, LITE sits about 3079% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich).
Is LITE a good stock to buy?
Bull Rankings scores LITE 52.4 out of 100 on its quality-growth model, which is a middling reading. That is driven by Rev (A-) and PEG (A-). A score is a quantitative screen of Lumentum Holdings Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does LITE score 52.4 on Bull Rankings?
The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). LITE earns its highest marks on Rev (A-) and PEG (A-), and is held back by P/E (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.
Is LITE overvalued or undervalued?
Based on $785.77, LITE sits about 3079% above our discounted-cash-flow fair value (i.e. the DCF flags it as rich). It trades at a 124.9x× P/E (graded D). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in LITE?
Trailing P/E 124.9x prices in sustained high growth — any quarter that disappoints triggers sharp re-rating. Beta 1.48 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. P/S 24.6x embeds aggressive forward growth — disappointing top-line guidance would compress the multiple hard.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.