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Shares Outstanding (EOP) are shares that have been authorized, issued, and purchased by investors and are held by them.
5-Year Share Buyback Ratio measures the average annual proportion of a company's outstanding shares repurchased over the past five years. It is calculated as the annualized percentage change in shares outstanding from five years ago to the current year. A positive ratio may indicate share buybacks over the period, while a zero or negative ratio may reflect no repurchases or potential share issuance. Lumentum Holdings's current 5-Year Share Buyback Ratio was 1.70%.
LITE's 5-Year Share Buyback Ratio is ranked better than 95.62% of 1779
companies
in the Hardware industry
Industry Median: -1.7
vs LITE: 1.70
Lumentum Holdings (NAS:LITE) 5-Year Share Buyback Ratio Explanation
A negative number means the company might be issuing new shares. A positive number indicates that the company is buying back shares.
Be Aware
Investors usually like share buybacks. But as pointed by Warren Buffett, only if a company buys back shares at the prices below the stock's intrinsic value, it rewards remaining shareholders. If a company buys its overvalued stocks back, it destroys shareholder value.
Lumentum Holdings 5-Year Share Buyback Ratio Related Terms
LITE vs MSI, CIEN, HPE: 5-Year Share Buyback Ratio Comparison
For the Communication Equipment subindustry, Lumentum Holdings's 5-Year Share Buyback Ratio, along with its competitors' market caps and 5-Year Share Buyback 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 5-Year Share Buyback Ratio vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's 5-Year Share Buyback Ratio distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings's 5-Year Share Buyback Ratio falls into.
Lumentum Holdings 5-Year Share Buyback Ratio Calculation
This is the annualized percentage change in shares outstanding from five years ago to the current year. The annualized percentage change is calculated with least-square regression based on the latest six years of annual data on Shares Outstanding (EOP).
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average dividends per share growth rate.
What does a 5-Year Share Buyback Ratio of 1.70 mean?
Lumentum Holdings (LITE) has a 5-Year Share Buyback Ratio of 1.70 as of Mar. 2026. The 5-Year Share Buyback Ratio measures the average annual proportion of a company's outstanding shares repurchased over the past five years. It is calculated as the annualized percentage change in shares outstanding from five years ago to the current year. View historical data for Lumentum Holdings and its competitors. According to the industry distribution chart, Lumentum Holdings ranks #78 out of 1779 companies in the Hardware industry, placing it in the top 4.4%.
Is Lumentum Holdings' 5-Year Share Buyback Ratio too high?
Lumentum Holdings' current 5-Year Share Buyback Ratio is 1.70. Based on the distribution chart, Lumentum Holdings ranks #78 out of 1779 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' 5-Year Share Buyback Ratio compare to MSI and CIEN?
According to the Hardware industry distribution chart, Lumentum Holdings ranks #78 out of 1779 companies for 5-Year Share Buyback Ratio. This places Lumentum Holdings in the top 4% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Share Buyback Ratio for a Hardware company?
A good 5-Year Share Buyback Ratio depends on the Hardware industry context. However, 5-Year Share Buyback Ratio 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 5-Year Share Buyback Ratio mean?
A high 5-Year Share Buyback Ratio can signal that a stock is expensive relative to its fundamentals. The 5-Year Share Buyback Ratio measures the average annual proportion of a company's outstanding shares repurchased over the past five years. It is calculated as the annualized percentage change in shares outstanding from five years ago to the current year. View historical data for Lumentum Holdings and its competitors. Lumentum Holdings's current 5-Year Share Buyback Ratio is 1.70. 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 (LITE) is currently considered Significantly Overvalued. The stock's GF Value™ is $98.90, compared to a current price of $732.82 — trading 641% above its estimated fair value. The current 5-Year Share Buyback Ratio is 1.70. 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 5-Year Share Buyback Ratio calculated?
5-Year Share Buyback Ratio is calculated from a company's financial statements. For Lumentum Holdings (LITE), the current 5-Year Share Buyback Ratio is 1.70 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 (LITE) Overvalued in 2026?
Based on GuruFocus' analysis, Lumentum Holdings stock appears to be overvalued.
The current stock price of $732.82 is trading 641% above its estimated GF Value™ of $98.90.
GuruFocus considers Lumentum Holdings to be Significantly Overvalued.
Key valuation signals for LITE:
5-Year Share Buyback Ratio: 1.70
GF Value™: $98.90 vs. price of $732.82 (641% above fair value)
No single metric tells the full story. See the LITE 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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5-Year Share Buyback Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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