Lumentum HoldingsXSWX:LITE1 61 Debt-to-EBITDA is 3.23 as of Mar. 2026, which is 19% below its 10-year median of 4.01. GuruFocus rates XSWX:LITE1 with a GF Score™ of 61/100 and a GF Value™ of CHF79.46. The stock has 4 warning signs investors should review. Among 1,788 Hardware companies, Lumentum Holdings ranks worse than 82.72% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Lumentum Holdings's Debt-to-EBITDA or its related term are showing as below:
XSWX:LITE1'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -31.37 Med: 4.01 Max: 47.39
Current: 6
During the past 13 years, the highest Debt-to-EBITDA Ratio of Lumentum Holdings was 47.39. The lowest was -31.37. And the median was 4.01.
XSWX:LITE1's Debt-to-EBITDA is ranked worse than 82.72% of 1788
companies
in the Hardware industry
Industry Median: 1.71
vs XSWX:LITE1: 6.00
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Lumentum Holdings Debt-to-EBITDA Related Terms
Lumentum Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Lumentum Holdings's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Communication Equipment subindustry, Lumentum Holdings's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Lumentum Holdings (XSWX:LITE1) has a Debt-to-EBITDA of 3.23 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Lumentum Holdings. This is 19% below median its historical median of 4.01. According to the industry distribution chart, Lumentum Holdings ranks #1479 out of 1788 companies in the Hardware industry, placing it in the top 82.7%.
Is Lumentum Holdings' Debt-to-EBITDA too high?
Lumentum Holdings' current Debt-to-EBITDA of 3.23 is 19% below median its 10-year median of 4.01. The Hardware industry median Debt-to-EBITDA is 1.71. Lumentum Holdings' value of 3.23 is 88.9% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #1479 out of 1788 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Lumentum Holdings has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' Debt-to-EBITDA compare to ?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #1479 out of 1788 companies for Debt-to-EBITDA. This places Lumentum Holdings in the lower half of its industry. The industry median Debt-to-EBITDA is 1.71. Lumentum Holdings' value of 3.23 is 88.9% above this benchmark. While the company's 10-year median is 4.01 vs. the industry median of 1.71, Lumentum Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Hardware company?
The median Debt-to-EBITDA among Hardware companies is 1.71, based on 1,788 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current Debt-to-EBITDA of 3.23 is 88.9% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Lumentum Holdings. For the Hardware industry, the median Debt-to-EBITDA is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current Debt-to-EBITDA is 3.23, which is 19% below median its own 10-year median of 4.01. 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 Debt-to-EBITDA of 3.23. The stock's GF Value™ is CHF79.46, compared to a current price of CHF604.50 — trading 660.8% above its estimated fair value. The current Debt-to-EBITDA is 3.23, which is 19% below median its 10-year median of 4.01 and 88.9% above the Hardware industry median of 1.71. Lumentum Holdings' overall GF Score™ is 61/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Lumentum Holdings (XSWX:LITE1), the current Debt-to-EBITDA is 3.23 as of Mar. 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 CHF604.50 is trading 660.8% above its estimated GF Value™ of CHF79.46.
Key valuation signals for XSWX:LITE1:
Debt-to-EBITDA: 3.23 (19% below median its 10-year median of 4.01)
GF Value™: CHF79.46 vs. price of CHF604.50 (660.8% above fair value)
Industry Position: 88.9% above the Hardware median (#1479 of 1788)
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.
61GF Score
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