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Lumentum Holdings GF Value Rank

: 5 (As of Today)
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Lumentum Holdings has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Communication Equipment subindustry, Lumentum Holdings's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

For the Hardware industry and Technology sector, Lumentum Holdings's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Lumentum Holdings's GF Value Rank falls into.



Lumentum Holdings GF Value Rank Related Terms

Thank you for viewing the detailed overview of Lumentum Holdings's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Lumentum Holdings Business Description

Lumentum Holdings logo
Traded in Other Exchanges
Address
1001 Ridder Park Drive, San Jose, CA, USA, 95131
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 OpComms and 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 (city-to-city and worldwide), and submarine (undersea) applications.
Executives
Harris Isaac Hosojiro director 310 W 113TH ST # 801 NEW YORK NY 10026-3389
Wong Janet S. director 2510 LAKE FRONT CIRCLE THE WOODLANDS TX 77380-1576
Covert Harold L director 400 NORTH MCCARTHY BLVD MILPITAS CA 95035
Thomas Samuel F director 400 N MCCARTHY BLVD MILPITAS CA 95035
Johnson Julia Suzanne director 1001 RIDDER PARK STREET SAN JOSE CA 95131
Small Ian director 400 N MCCARTHY BLVD MILPITAS CA 95035
Herscher Penny director 1001 RIDDER PARK DRIVE SAN JOSE CA 95131
Lillie Brian director 1485 BROOKMILL ROAD LOS ALTOS CA 94024
Ali Wajid officer: EVP & Chief Financial Officer 400 N MCCARTHY BLVD MILPITAS CA 95035
Retort Vincent officer: EVP, Chief Operating Officer 400 MCCARTHY BLVD MILPITAS CA 95035
Reinhardt Jason officer: EVP, Global Sales 400 N. MCCARTHY BLVD MILPITAS CA 95035
Lowe Alan S director, officer: Chief Executive Officer 400 NORTH MCCARTHY BLVD MILPITAS CA 95035
Sepe Matthew Joseph officer: Chief Accounting Officer 400 NORTH MCCARTHY BLVD MILPITAS CA 95035
Hamel Judy G officer: SVP, GC and Secretary 400 MCCARTHY BLVD MILPITAS CA 95035
Coldren Christopher W. officer: Interim CFO 400 NORTH MCCARTHY BLVD MILPITAS CA 95035

Lumentum Holdings Headlines

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