Latest Ratios: P/E Ratio 1888.9x · EV/EBITDA 678.7x · ROE 2.5%. (2013–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $49.9B | $6.6B | $3.4B | $3.9B | $5.9B | $6.1B | $5.9B | $3.8B | $3.7B | $3.5B | $1.5B |
| Enterprise Value | $52.0B | $8.7B | $5.5B | $5.9B | $6.5B | $6.6B | $6.8B | $4.2B | $3.6B | $3.5B | $1.3B |
| P/E Ratio → | 1888.95 | 256.08 | — | — | 29.63 | 30.61 | 43.50 | — | 14.77 | — | — |
| P/S Ratio | 30.34 | 4.01 | 2.52 | 2.19 | 3.44 | 3.55 | 3.52 | 2.41 | 2.94 | 3.45 | 1.64 |
| P/B Ratio | 42.87 | 5.81 | 3.58 | 2.86 | 3.14 | 3.09 | 3.38 | 2.52 | 3.81 | 5.28 | 2.78 |
| P/FCF | — | — | — | 75.53 | 16.01 | 9.45 | 13.48 | 23.01 | 23.75 | — | 321.97 |
| P/OCF | 395.11 | 52.21 | 138.74 | 21.55 | 12.83 | 8.24 | 11.27 | 11.44 | 14.81 | 40.67 | 17.10 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.28 | 4.08 | 3.33 | 3.82 | 3.83 | 4.05 | 2.67 | 2.89 | 3.50 | 1.47 |
| EV / EBITDA | 678.72 | 113.34 | — | 42.10 | 13.90 | 13.93 | 17.17 | 44.14 | 16.63 | 32.25 | 20.03 |
| EV / EBIT | — | — | — | — | 20.74 | 20.78 | 28.87 | 1394.93 | 24.46 | — | 135.10 |
| EV / FCF | — | — | — | 114.80 | 17.76 | 10.18 | 15.51 | 25.50 | 23.39 | — | 287.81 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.0% | 28.0% | 18.5% | 32.2% | 46.0% | 46.0% | 38.7% | 27.2% | 34.9% | 31.8% | 30.7% |
| Operating Margin | -10.9% | -10.9% | -31.9% | -6.5% | 17.7% | 17.7% | 12.2% | -4.0% | 11.2% | 4.8% | 1.3% |
| Net Profit Margin | 1.6% | 1.6% | -40.2% | -7.4% | 11.6% | 11.6% | 8.1% | -2.3% | 19.9% | -10.2% | 1.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 2.5% | 2.5% | -47.3% | -8.1% | 10.3% | 10.7% | 8.3% | -3.0% | 30.7% | -17.3% | 2.0% |
| ROA | 0.6% | 0.6% | -12.8% | -3.0% | 5.2% | 5.8% | 4.5% | -1.7% | 17.6% | -10.5% | 1.5% |
| ROIC | -4.3% | -4.3% | -10.1% | -2.9% | 9.2% | 9.0% | 6.7% | -3.3% | 13.1% | 6.6% | 2.3% |
| ROCE | -4.8% | -4.8% | -11.3% | -3.1% | 9.6% | 10.3% | 7.5% | -3.3% | 11.6% | 5.9% | 2.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.30 | 2.30 | 2.67 | 2.12 | 1.03 | 0.63 | 0.68 | 0.56 | 0.36 | 0.49 | — |
| Debt / EBITDA | 34.05 | 34.05 | — | 20.54 | 4.12 | 2.64 | 3.00 | 8.87 | 1.57 | 2.92 | — |
| Net Debt / Equity | — | 1.84 | 2.22 | 1.49 | 0.34 | 0.24 | 0.51 | 0.27 | -0.06 | 0.07 | -0.29 |
| Net Debt / EBITDA | 27.25 | 27.25 | — | 14.40 | 1.37 | 0.99 | 2.25 | 4.31 | -0.26 | 0.41 | -2.38 |
| Debt / FCF | — | — | — | 39.27 | 1.75 | 0.72 | 2.03 | 2.49 | -0.36 | — | -34.15 |
| Interest Coverage | -6.75 | -6.75 | -11.00 | -1.88 | 3.93 | 3.93 | 3.85 | 0.08 | 8.11 | -9.87 | 98.00 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.37 | 4.37 | 5.90 | 4.38 | 4.38 | 3.67 | 7.24 | 4.53 | 5.27 | 5.05 | 2.82 |
| Quick Ratio | 3.18 | 3.18 | 4.43 | 3.74 | 4.03 | 3.37 | 6.58 | 3.76 | 4.55 | 4.26 | 2.24 |
| Cash Ratio | 2.23 | 2.23 | 3.29 | 3.18 | 3.56 | 2.93 | 5.49 | 2.61 | 3.32 | 3.01 | 0.90 |
| Asset Turnover | — | 0.39 | 0.35 | 0.38 | 0.41 | 0.48 | 0.51 | 0.58 | 0.79 | 0.81 | 1.24 |
| Inventory Turnover | 2.52 | 2.52 | 2.78 | 2.93 | 3.69 | 4.70 | 5.44 | 4.98 | 5.31 | 4.71 | 6.22 |
| Days Sales Outstanding | — | 55.47 | 52.28 | 50.84 | 55.84 | 45.35 | 50.77 | 55.50 | 57.66 | 60.60 | 68.92 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | 0.0% | 0.0% | 0.0% | 0.0% |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | 5.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.1% | 0.4% | — | — | 3.4% | 3.3% | 2.3% | — | 6.8% | — | — |
| FCF Yield | — | — | — | 1.3% | 6.2% | 10.6% | 7.4% | 4.3% | 4.2% | — | 0.3% |
| Buyback Yield | 0.1% | 0.6% | 0.0% | 4.5% | 9.2% | 4.5% | 3.4% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.1% | 0.6% | 0.0% | 4.5% | 9.2% | 4.5% | 3.4% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $70M | $67M | $68M | $74M | $74M | $78M | $71M | $63M | $61M | $61M |
Cyclical demand and inventory
Based on reported figures, LITE trades at a forward P/E of 99.63, a valuation that appears to price in aggressive growth expectations for AI-driven optical interconnects rather than the historical cyclicality of its legacy telecommunications business, warranting caution regarding the sustainability of such elevated market pricing.
The current P/S ratio of 35.46 suggests that investors are assigning a significant premium to the company's revenue base, likely anticipating a structural shift in demand from cloud service providers. However, this valuation appears disconnected from the company's recent history of margin volatility, suggesting that any deviation from the expected growth trajectory could lead to a sharp contraction in multiples.
According to recent financial statements, Lumentum's ROIC has improved to 3.6% in 2026Q3 from the negative levels observed throughout 2024 and 2025, indicating that the company is beginning to generate positive returns on its invested capital as manufacturing utilization rates recover from cyclical lows.
The transition from negative ROIC to positive territory suggests that the company's recent capital allocation toward high-growth datacom segments is beginning to bear fruit. Investors should monitor whether this trend can be sustained, as the company's high fixed-cost structure requires consistent volume to maintain these improved return levels.
As reported in quarterly filings, Lumentum's cash conversion cycle remains elevated at 93 days in 2026Q3, reflecting persistent challenges in managing inventory levels, which have historically been a significant drag on the company's ability to generate free cash flow during periods of shifting demand.
The DIO of 121 days suggests that the company continues to carry substantial inventory, which may indicate either a strategic buffer for supply chain resilience or an inability to perfectly align production with end-market consumption. This inefficiency warrants further investigation, as it directly impacts the company's liquidity and working capital requirements.
Based on the provided financial data, Lumentum maintains a conservative debt-to-equity ratio of 1.11 as of 2026Q3, suggesting that management has successfully avoided over-leveraging the balance sheet despite the capital-intensive nature of its recent acquisitions and the inherent volatility of the optical communications sector.
The interest coverage ratio of 28.15 indicates that the company is currently in a comfortable position to service its debt obligations, providing a necessary cushion against potential future downturns. This financial discipline appears to be a core pillar of the company's strategy, allowing it to navigate cyclical troughs without compromising its long-term solvency.
Investors frequently misapply the P/E ratio to Lumentum, as the metric is heavily distorted by non-operating items and acquisition-related accounting, which obscures the company's true underlying earning power and makes it a poor indicator of value for a business model characterized by high fixed-cost cyclicality.
Instead of relying on P/E, analysts should focus on EV/EBITDA or free cash flow yields to better understand the company's operational performance, as these metrics are less sensitive to the accounting noise inherent in the company's recent M&A activity. Relying on headline P/E figures may lead to an inaccurate assessment of the company's valuation relative to its peers.
Includes 30+ ratios · 13 years · Updated daily
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Quick answers to the most common questions about buying LITE stock.
Lumentum Holdings Inc.'s current P/E ratio is 1888.9x. The historical average is 29.6x. This places it at the 100th percentile of its historical range.
Lumentum Holdings Inc.'s current EV/EBITDA is 678.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 25.0x.
Lumentum Holdings Inc.'s return on equity (ROE) is 2.5%. The historical average is -0.5%.
Based on historical data, Lumentum Holdings Inc. is trading at a P/E of 1888.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Lumentum Holdings Inc. has 28.0% gross margin and -10.9% operating margin.
Lumentum Holdings Inc.'s Debt/EBITDA ratio is 34.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.