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During the past 3 years, the average Free Cash Flow per Share Growth Rate was 75.00% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
During the past 13 years, the highest 3-Year average Free Cash Flow per Share Growth Rate of Lumentum Holdings was 209.90% per year. The lowest was -231.70% per year. And the median was -6.55% per year.
Free Cash Flow per Share is the amount of Free Cash Flow per outstanding share of the company's stock. Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company. It's used in the calculation of Forward Rate of Return (Yacktman) %.
Lumentum Holdings 3-Year FCF Growth Rate Related Terms
XSWX:LITE1 vs HPE, CIEN, MSI: 3-Year FCF Growth Rate Comparison
For the Communication Equipment subindustry, Lumentum Holdings's 3-Year FCF Growth Rate, along with its competitors' market caps and 3-Year FCF Growth Rate 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 3-Year FCF Growth Rate vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's 3-Year FCF Growth Rate distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's 3-Year FCF Growth Rate falls into.
This is the 3-year average growth rate of Free Cash Flow per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average Free Cash Flow per Share growth rate.
What does a 3-Year FCF Growth Rate of 75.00% mean?
Lumentum Holdings (XSWX:LITE1) has a 3-Year FCF Growth Rate of 75.00% as of Jun. 2026. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for Lumentum Holdings and its competitors. According to the industry distribution chart, Lumentum Holdings ranks #999999 out of 1486 companies in the Hardware industry.
Is Lumentum Holdings' 3-Year FCF Growth Rate too high?
Lumentum Holdings' current 3-Year FCF Growth Rate is 75.00%. The Hardware industry median 3-Year FCF Growth Rate is 6.05. Lumentum Holdings' value of 75.00% is 1139.7% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #999999 out of 1486 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Lumentum Holdings has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' 3-Year FCF Growth Rate compare to HPE and CIEN?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #999999 out of 1486 companies for 3-Year FCF Growth Rate. This places Lumentum Holdings in the lower half of its industry. The industry median 3-Year FCF Growth Rate is 6.05. Lumentum Holdings' value of 75.00% is 1139.7% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year FCF Growth Rate for a Hardware company?
The median 3-Year FCF Growth Rate among Hardware companies is 6.05, based on 1,486 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year FCF Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year FCF Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current 3-Year FCF Growth Rate of 75.00% is 1139.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year FCF Growth Rate mean?
A high 3-Year FCF Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year FCF Growth Rate is the 3-year average growth rate of Free Cash Flow per Share. View historical data for Lumentum Holdings and its competitors. For the Hardware industry, the median 3-Year FCF Growth Rate is 6.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current 3-Year FCF Growth Rate is 75.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lumentum Holdings stock overvalued right now?
Lumentum Holdings (XSWX:LITE1) has a current 3-Year FCF Growth Rate of 75.00%. The stock's GF Value™ is CHF132.25, compared to a current price of CHF677.50 — trading 412.3% above its estimated fair value. The current 3-Year FCF Growth Rate is 75.00% and 1139.7% above the Hardware industry median of 6.05. Lumentum Holdings' overall GF Score™ is 67/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year FCF Growth Rate calculated?
3-Year FCF Growth Rate is calculated from a company's financial statements. For Lumentum Holdings (XSWX:LITE1), the current 3-Year FCF Growth Rate is 75.00% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lumentum Holdings (XSWX:LITE1) Overvalued in 2026?
Based on GuruFocus' analysis, Lumentum Holdings stock appears to be overvalued.
The current stock price of CHF677.50 is trading 412.3% above its estimated GF Value™ of CHF132.25.
Key valuation signals for XSWX:LITE1:
3-Year FCF Growth Rate: 75.00%
GF Value™: CHF132.25 vs. price of CHF677.50 (412.3% above fair value)
Industry Position: 1139.7% above the Hardware median (#999999 of 1486)
No single metric tells the full story. See the XSWX:LITE1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 Optical Communications and Commercial 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.
67GF Score
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3-Year FCF Growth Rate is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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