The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Lumentum Holdings Pretax Margin % Related Terms
Lumentum Holdings Pretax Margin % Historical Data
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The historical data trend for Lumentum Holdings's Pretax Margin % 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: Pretax Margin % Comparison
For the Communication Equipment subindustry, Lumentum Holdings's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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 Pretax Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's Pretax Margin % 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.
Lumentum Holdings (XTER:LU2) has a Pretax Margin % of 22.74% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lumentum Holdings and its competitors. According to the industry distribution chart, Lumentum Holdings ranks #573 out of 2472 companies in the Hardware industry, placing it in the top 23.2%.
Is Lumentum Holdings' Pretax Margin % too high?
Lumentum Holdings' current Pretax Margin % is 22.74%. The Hardware industry median Pretax Margin % is 3.58. Lumentum Holdings' value of 22.74% is 536.1% above this industry median. Based on the distribution chart, Lumentum Holdings ranks #573 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position 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' Pretax Margin % compare to MSI and HPE?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #573 out of 2472 companies for Pretax Margin %. This places Lumentum Holdings in the top 23% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.58. Lumentum Holdings' value of 22.74% is 536.1% 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 Pretax Margin % for a Hardware company?
The median Pretax Margin % among Hardware companies is 3.58, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lumentum Holdings's current Pretax Margin % of 22.74% is 536.1% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Lumentum Holdings and its competitors. For the Hardware industry, the median Pretax Margin % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current Pretax Margin % is 22.74%. 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 Pretax Margin % is 22.74% and 536.1% above the Hardware industry median of 3.58. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Lumentum Holdings (XTER:LU2), the current Pretax Margin % is 22.74% 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 (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:
Pretax Margin %: 22.74%
GF Value™: €80.10 vs. price of €691.40 (763.2% above fair value)
Industry Position: 536.1% above the Hardware median (#573 of 2472)
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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