Lumentum Holdings (Lumentum Holdings) GF Value Rank : 8 (As of Apr. 30, 2024)

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What is Lumentum Holdings GF Value Rank?

Lumentum Holdings has the GF Value Rank of 8.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of Lumentum Holdings's GF Value Rank

For the Communication Equipment subindustry, Lumentum Holdings's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Lumentum Holdings's GF Value Rank Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Lumentum Holdings's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Lumentum Holdings's GF Value Rank falls into.

Lumentum Holdings GF Value Rank Related Terms

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Lumentum Holdings (Lumentum Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Lumentum Holdings Inc (NAS:LITE) » Definitions » GF Value Rank

Comparable Companies

Traded in Other Exchanges

LU2:Germany LU2:Germany

Address

1001 Ridder Park Drive, San Jose, CA, USA, 95131

Website

https://www.lumentum.com

Lumentum Holdings Inc is a California-based technology firm. The company provides two types of optical and photonic products: optical components that are used in telecommunications networking equipment, and commercial lasers for manufacturing, inspection, and life-science lab uses. Its segments are OpComms and Lasers. The firm is also expanding into new optical applications, such as 3-D sensing laser diode for consumer electronics. It generates maximum revenue from the OpComms segment. The OpComms segment products include a wide range of components, modules and subsystems to support customers including carrier networks for access (local), metro (intracity), long-haul, and submarine (undersea) applications.

Executives

Julia Suzanne Johnson	director	1001 RIDDER PARK STREET, SAN JOSE CA 95131
Yuen Wupen	officer: See Remarks	2911 ZANKER ROAD, SAN JOSE CA 95134
Wajid Ali	officer: EVP & Chief Financial Officer	400 N MCCARTHY BLVD, MILPITAS CA 95035
Pamela Fletcher	director	C/O COHERENT, INC., 5100 PATRICK HENRY DRIVE, SANTA CLARA CA 95054
Matthew Joseph Sepe	officer: Chief Accounting Officer	400 NORTH MCCARTHY BLVD, MILPITAS CA 95035
Brian Lillie	director	1485 BROOKMILL ROAD, LOS ALTOS CA 94024
Alan S Lowe	director, officer: Chief Executive Officer	400 NORTH MCCARTHY BLVD, MILPITAS CA 95035
Judy G Hamel	officer: SVP, GC and Secretary	400 MCCARTHY BLVD, MILPITAS CA 95035
Penny Herscher	director	1001 RIDDER PARK DRIVE, SAN JOSE CA 95131
Isaac Hosojiro Harris	director	310 W 113TH ST # 801, NEW YORK NY 10026-3389
Vincent Retort	officer: EVP, Chief Operating Officer	400 MCCARTHY BLVD, MILPITAS CA 95035
Harold L Covert	director	400 NORTH MCCARTHY BLVD, MILPITAS CA 95035
Jason Reinhardt	officer: EVP, Global Sales	400 N. MCCARTHY BLVD, MILPITAS CA 95035
Janet S. Wong	director	2510 LAKE FRONT CIRCLE, THE WOODLANDS TX 77380-1576
Samuel F Thomas	director	400 N MCCARTHY BLVD, MILPITAS CA 95035