Lumentum HoldingsXTER:LU2 -6.66%61 PB Ratio is 19.27 as of Jun. 27, 2026, which is 446% above its 10-year median of 3.53. GuruFocus rates XTER:LU2 with a GF Score™ of 61/100 and a GF Value™ of €80.10 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,413 Hardware companies, Lumentum Holdings ranks worse than 95.81% on this metric.
The historical rank and industry rank for Lumentum Holdings's PB Ratio or its related term are showing as below:
XTER:LU2'
s PB Ratio Range Over the Past 10 Years
Min: 1.84 Med: 3.53 Max: 59.57
Current: 19.7
During the past 13 years, Lumentum Holdings's highest PB Ratio was 59.57. The lowest was 1.84. And the median was 3.53.
XTER:LU2's PB Ratio is ranked worse than 95.81% of 2413
companies
in the Hardware industry
Industry Median: 2.4
vs XTER:LU2: 19.70
During the past 12 months, Lumentum Holdings's average Book Value Per Share Growth Rate was 227.20% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was -16.10% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was -10.90% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 9.90% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Lumentum Holdings was 32.80% per year. The lowest was -19.50% per year. And the median was 20.25% per year.
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Lumentum Holdings PB Ratio Related Terms
Lumentum Holdings PB Ratio Historical Data
* Premium members only.
The historical data trend for Lumentum Holdings's PB 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.
For the Communication Equipment subindustry, Lumentum Holdings's PB Ratio, along with its competitors' market caps and PB 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 PB Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's PB Ratio distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Lumentum Holdings (XTER:LU2) has a PB Ratio of 19.27 as of Jun. 27, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Lumentum Holdings and its competitors. This is 446% above median its historical median of 3.53. Over the past decade, Lumentum Holdings' PB Ratio has ranged from 1.84 to 59.57. According to the industry distribution chart, Lumentum Holdings ranks #2312 out of 2413 companies in the Hardware industry, placing it in the top 95.8%.
Is Lumentum Holdings' PB Ratio too high?
Lumentum Holdings' current PB Ratio of 19.27 is 446% above median its 10-year median of 3.53. Over the past 10 years, this metric has ranged from a low of 1.84 to a high of 59.57. The Hardware industry median PB Ratio is 2.40. Lumentum Holdings' value of 19.27 is 702.9% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #2312 out of 2413 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' PB Ratio compare to MSI and HPE?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #2312 out of 2413 companies for PB Ratio. This places Lumentum Holdings in the lower half of its industry. The industry median PB Ratio is 2.40. Lumentum Holdings' value of 19.27 is 702.9% above this benchmark. Historically, Lumentum Holdings' own PB Ratio has ranged from 1.84 to 59.57 over the past decade. While the company's 10-year median is 3.53 vs. the industry median of 2.40, 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 PB Ratio for a Hardware company?
The median PB Ratio among Hardware companies is 2.40, based on 2,413 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current PB Ratio of 19.27 is 702.9% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Lumentum Holdings and its competitors. For the Hardware industry, the median PB Ratio is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current PB Ratio is 19.27, which is 446% above median its own 10-year median of 3.53. 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 PB Ratio is 19.27, which is 446% above median its 10-year median of 3.53 and 702.9% above the Hardware industry median of 2.40. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Lumentum Holdings (XTER:LU2), the current PB Ratio is 19.27 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:
PB Ratio: 19.27 (446% above median its 10-year median of 3.53)
GF Value™: €80.10 vs. price of €691.40 (763.2% above fair value)
Industry Position: 702.9% above the Hardware median (#2312 of 2413)
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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