Lumentum Holdings (XSWX:LITE1) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Lumentum Holdings Forward PE Ratio Related Terms
Lumentum Holdings Forward PE Ratio Historical Data
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The historical data trend for Lumentum Holdings's Forward PE Ratio 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.
Lumentum Holdings Forward PE Ratio Chart
Lumentum Holdings Annual Data
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Lumentum Holdings Quarterly Data
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XSWX:LITE1 vs : Forward PE Ratio Comparison
For the Communication Equipment subindustry, Lumentum Holdings's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Lumentum Holdings (XSWX:LITE1) has a Forward PE Ratio of 42.47 as of Jul. 04, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Lumentum Holdings and its competitors. According to the industry distribution chart, Lumentum Holdings ranks #728 out of 1019 companies in the Hardware industry, placing it in the top 71.4%.
Is Lumentum Holdings' Forward PE Ratio too high?
Lumentum Holdings' current Forward PE Ratio is 42.47. The Hardware industry median Forward PE Ratio is 24.24. Lumentum Holdings' value of 42.47 is 75.2% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #728 out of 1019 companies in the Hardware industry, which is below the industry midpoint. Overall, Lumentum Holdings has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' Forward PE Ratio compare to ?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #728 out of 1019 companies for Forward PE Ratio. This places Lumentum Holdings in the lower half of its industry. The industry median Forward PE Ratio is 24.24. Lumentum Holdings' value of 42.47 is 75.2% 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 Forward PE Ratio for a Hardware company?
The median Forward PE Ratio among Hardware companies is 24.24, based on 1,019 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current Forward PE Ratio of 42.47 is 75.2% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Lumentum Holdings and its competitors. For the Hardware industry, the median Forward PE Ratio is 24.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current Forward PE Ratio is 42.47. 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 Forward PE Ratio of 42.47. 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 Forward PE Ratio is 42.47 and 75.2% above the Hardware industry median of 24.24. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Lumentum Holdings (XSWX:LITE1), the current Forward PE Ratio is 42.47 as of Jul. 04, 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:
Forward PE Ratio: 42.47
GF Value™: CHF79.46 vs. price of CHF604.50 (660.8% above fair value)
Industry Position: 75.2% above the Hardware median (#728 of 1019)
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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