The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Good Sign:
Beneish M-Score -2.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Lumentum Holdings's Beneish M-Score or its related term are showing as below:
XTER:LU2'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.6 Med: -2.73 Max: -1.05
Current: -2.02
During the past 13 years, the highest Beneish M-Score of Lumentum Holdings was -1.05. The lowest was -3.60. And the median was -2.73.
Lumentum Holdings Beneish M-Score Related Terms
Lumentum Holdings Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Lumentum Holdings's Beneish M-Score 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.
XTER:LU2 vs MSI, HPE, CIEN: Beneish M-Score Comparison
For the Communication Equipment subindustry, Lumentum Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Lumentum Holdings for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 1.0323
+
0.528 * 0.6324
+
0.404 * 0.5866
+
0.892 * 1.5644
+
0.115 * 1.424
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0.6205
+
4.679 * -0.000326
-
0.327 * 0.7553
=
-2.12
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(273.34 / (273.34 + 671.087))
/
(218.745 / (218.745 + 857.474))
=
0.289424
/
0.203253
=
1.424
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(380.025 - -7.302
-
389.308)
/
6079.133
=
-0.000326
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Lumentum Holdings has a M-score of -2.12 suggests that the company is unlikely to be a manipulator.
Lumentum Holdings (XTER:LU2) has a Beneish M-Score of -2.02 as of Jun. 27, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Lumentum Holdings and its competitors. According to the industry distribution chart, Lumentum Holdings ranks #1871 out of 2404 companies in the Hardware industry, placing it in the top 77.8%.
Is Lumentum Holdings' Beneish M-Score too high?
Lumentum Holdings' current Beneish M-Score is -2.02. Based on the distribution chart, Lumentum Holdings ranks #1871 out of 2404 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Lumentum Holdings has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' Beneish M-Score compare to MSI and HPE?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #1871 out of 2404 companies for Beneish M-Score. This places Lumentum Holdings in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Hardware company?
A good Beneish M-Score depends on the Hardware industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Lumentum Holdings and its competitors. Lumentum Holdings's current Beneish M-Score is -2.02. 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?
Based on GuruFocus' analysis, Lumentum Holdings (XTER:LU2) is currently considered Significantly Overvalued. The stock's GF Value™ is €80.10, compared to a current price of €691.40 — trading 763.2% above its estimated fair value. The current Beneish M-Score is -2.02. 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 Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Lumentum Holdings (XTER:LU2), the current Beneish M-Score is -2.02 as of Jun. 27, 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 (XTER:LU2) Overvalued in 2026?
Based on GuruFocus' analysis, Lumentum Holdings stock appears to be overvalued.
The current stock price of €691.40 is trading 763.2% above its estimated GF Value™ of €80.10.
GuruFocus considers Lumentum Holdings to be Significantly Overvalued.
Key valuation signals for XTER:LU2:
Beneish M-Score: -2.02
GF Value™: €80.10 vs. price of €691.40 (763.2% above fair value)
No single metric tells the full story. See the XTER:LU2 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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