Using the industry peer median P/E multiple (trailing + forward), Lumentum Holdings Inc. (LITE) has a fair value of $23.65 based on 3 comparable companies in the Communication Equipment industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Lumentum Holdings Inc.LITE | 48,650 | 1889.2x | 351.9x |
| Cisco Systems, Inc.CSCO | 326,360 | 32.4x | 22.3x |
| Motorola Solutions, Inc.MSI | 75,136 | 35.4x | 33.0x |
| Zebra Technologies CorporationZBRA | 10,376 | 25.0x | 12.9x |
| Industry Median | 32.4x | 22.3x | |
| (*) Profit after tax | 26 | 138 | |
| Equity Value | 839 | 2,454 | |
| (/) Outstanding shares | 70 | 70 | |
| Fair Price | $12 | $35 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.