Risk factor
Very high price volatility
Profitability factor
Greatly overvalued vs peers
About
Lumentum Holdings Inc. is a prominent supplier of advanced optical and photonic solutions. The company's headquarters are located in San Jose, California, and it employs 5,161 full-time personnel. Its operations are organized into two principal segments: Optical Communications (OpComms) and Commercial Lasers. The OpComms division furnishes a broad array of components, modules, and integrated subsystems designed to support clients in the crucial Telecom and Datacom industries. Concurrently, the Commercial Lasers segment offers products utilized in diverse markets and applications, such as manufacturing, biotechnology, graphics and imaging, remote sensing, and intricate precision machining activities, including drilling printed circuit boards, wafer singulation, and solar cell scribing. The firm's customer base is primarily composed of original equipment manufacturers (OEMs).
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBI