What Is LITE Fair Value?
Lumentum (LITE) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Lumentum (LITE) has a composite fair value estimate of $419.81 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $896.33, suggesting the stock is overvalued by 53.2%.
Data as of October 14, 2026 (today)
Composite Fair Value
Overvalued3 of 4 models$419.81
vs. current price of $896.33(-53.2%)
How Is LITE Fair Value Calculated?
Four independent models estimate what LITE is worth. Each uses different inputs and assumptions. The composite blends them by weight.
LITE Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
41% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$107.78
-88.0%Overvalued
Inputs used
DDM (Dividend Discount Model)
0% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
LITE Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
29% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$160.31
-82.1%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
29% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$1,089.54
+21.6%Undervalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $896.33 is 88.0% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $280.9M | $249.1M |
| Year 2 | $351.1M | $276.1M |
| Year 3 | $438.9M | $306.1M |
| Year 4 | $548.6M | $339.3M |
| Year 5 | $685.7M | $376.1M |
| Year 6 | $857.2M | $416.9M |
| Year 7 | $1.07B | $462.1M |
| Year 8 | $1.34B | $512.2M |
| Year 9 | $1.67B | $567.8M |
| Year 10 | $2.09B | $629.4M |
| Terminal Value | $20.89B | $6.28B |
What Are LITE's Key Financial Metrics?
Earnings & Growth
Current Price
$896.33
EPS (TTM)
-$92.96
Forward P/E
24.9
Profit Margin
-230.1%
Cash & Balance Sheet
Free Cash Flow
224.7M
EBITDA
800.7M
Book Value
$52.41
Total Debt
1.7B
What Do Analysts Say About LITE?
Low
$820.00
Average
$1,179.07
High
$1,500.00
Upside
+31.5%
LITE Fair Value FAQ
What is the fair value of LITE?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), LITE's estimated fair value is $419.81. The stock is currently trading at $896.33, which makes it overvalued by our analysis.
How is LITE's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is LITE overvalued or undervalued?
Based on our analysis, LITE is overvalued. The current price of $896.33 is 53.2% above our estimated fair value of $419.81.
What do Wall Street analysts say about LITE?
26 analysts cover Lumentum with a consensus rating of "Strong Buy." The average price target is $1,179.07, ranging from $820.00 to $1,500.00. This implies 31.5% upside from the current price.