The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
Description:
Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, Asia-Pacific, Europe, the Middle East, and Africa. The company is headquartered in San Jose, California.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $437 M
Debt : $2,503 M
EBITDA : $-23 M
Net Debt (Debt - Cash): $2,067 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Communication Equipment
Based on sector, 5 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 19.02
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $126 M
Average Revenue: $1,241 M
Free Cash Flow to Revenue : 10 %
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-06-30): $1,359 M
Revenue 4 Years Ago (2020-06-30): $1,679 M
Last 5 Years Average Revenue Growth: -4%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-06-30): $67 M
Share Count 5 Years Ago (2020-06-30): $78 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $3.80
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: -1%
Since Average ROE is negative, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $72
52-Week Low: $38
Threshold Price (15% Above 52-Week Low): $44
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $5,439 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 14 points to above Lumentum Holdings Inc (LITE) stock.
Twenty Years Avg PE 17, Fair Value PE 20 and Industry Based PE is 16. Based on these three values average assigned is 17.67.
Value-Trades has assined P/E value 17.67. Since current year earning per share is $3.80.
The fair value of Lumentum Holdings Inc (LITE) stock should be (17.67 x $3.80) = $67.15
