Lumentum Holdings Inc.Opportunity Rank #251(LITE) Intrinsic Value & DCF Analysis (2026)
Current Price
$893.93
Last updated: Jun 23, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
-1 vs previous
Trend Score
As of 2026-06-22
The intrinsic value of Lumentum Holdings Inc. (LITE) is estimated at $112.87 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $893.93, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 7.01% long-term growth rate and a 10.07% discount rate, reflecting expected future free cash flow and cost of capital.
The intrinsic value of Lumentum Holdings Inc. (LITE) is estimated at $112.87 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $893.93, the stock appears overvalued relative to its projected cash flow fundamentals. This estimate assumes a 7.01% long-term growth rate and a 10.07% discount rate, reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Trend Details
Investment Coach
- Price moving to at least a mid-teens discount to fair value
- Sustained improvement in ROIC versus WACC spread
- Meaningful shifts in the narrative score direction
Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates Lumentum Holdings Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
Lumentum Holdings Inc.Technology
Lumentum Holdings Inc., established in 2015 and headquartered in San Jose, California, is a global leader in optical and photonic product manufacturing. The company's reach extends across the Americas, Asia-Pacific, Europe, the Middle East, and Africa. Lumentum operates through two principal business units: Optical Communications (OpComms) and Commercial Lasers. The OpComms segment develops and supplies components, modules, and subsystems essential for transmitting video, audio, and data across high-capacity fiber optic networks. Its offerings encompass a wide range of products, including tunable transponders, transceivers, and transmitter modules, alongside various tunable lasers, receivers, and modulators. Furthermore, this segment provides critical transport products such as reconfigurable optical add/drop multiplexers (ROADMs), optical amplifiers, and optical channel monitors. A comprehensive suite of components is also available, featuring 980nm, multi-mode, and Raman pumps; switches; attenuators; photodetectors; gain flattening filters; isolators; wavelength-division multiplexing (WDM) filters; arrayed waveguide gratings (AWGs); multiplex/de-multiplexers; and integrated passive modules. Distinctive innovations from this segment include the Super Transport Blade, which integrates multiple optical transport functions into a single unit; vertical-cavity surface-emitting lasers (VCSELs); directly modulated and electro-absorption modulated lasers; and advanced laser illumination sources for 3D sensing systems. OpComms serves key clientele in the telecommunications, data communications, consumer, and industrial markets. Conversely, the Commercial Lasers segment produces an array of laser technologies, such as diode-pumped solid-state, fiber, diode, direct-diode, and gas lasers. These are primarily utilized in original equipment manufacturer (OEM) applications. This segment's laser solutions cater to a broad spectrum of markets and uses, including sheet metal processing, general manufacturing, biotechnology, graphics and imaging, remote sensing, and precision machining.