Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Lumentum Holdings Inc., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2026-06-27), 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03).
The financial trajectory from July 2021 through June 2026 is characterized by a significant deterioration in profitability and a severe collapse in earnings across all measured metrics by the final period. A consistent downward trend is observed from 2021 to 2024, followed by a marginal stabilization in 2025 and an extreme decline in 2026.
- EBITDA Trend Analysis
- Earnings before interest, tax, depreciation and amortization (EBITDA) exhibited a steady decline from a peak of US$ 706.9 million in 2021 to US$ 482.4 million in 2022 and US$ 188.7 million in 2023. The metric entered negative territory for the first time in June 2024 at -US$ 81.6 million. While a temporary recovery to US$ 106.8 million occurred in 2025, the final period shows a catastrophic drop to -US$ 6,884.0 million, indicating a total erosion of operational cash flow capability.
- Net Income and EBT Volatility
- Net income transitioned from a surplus of US$ 397.3 million in 2021 to substantial losses starting in 2023 (-US$ 131.6 million), deepening to -US$ 546.5 million in 2024. Although net income returned to a marginal positive value of US$ 25.9 million in 2025, this was not sustained, resulting in a loss of US$ 6,935.1 million by June 2026. Earnings before tax (EBT) followed a similar pattern, reflecting an inability to maintain profitability before the impact of income taxes.
- Operational Performance (EBIT vs. EBITDA)
- A persistent gap between EBIT and EBITDA is evident throughout the period, highlighting the impact of depreciation and amortization. In the initial years, EBITDA remained positive while EBIT declined faster, suggesting that non-cash charges were a significant component of the operational loss. By 2026, the convergence of EBIT (-US$ 7,151.0 million) and EBITDA (-US$ 6,884.0 million) suggests that the primary driver of the loss was operational rather than tied to asset depreciation.
- Critical Financial Decline in 2026
- The data reveals an unprecedented collapse in all financial metrics during the period ending June 27, 2026. The magnitude of the losses—exceeding US$ 6.8 billion for EBITDA and US$ 7.1 billion for EBIT—represents a systemic failure in earnings generation compared to the preceding five years, suggesting a major impairment or extraordinary loss event.
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Enterprise Value to EBITDA Ratio, Current
Lumentum Holdings Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 76,896,736) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | (6,884,000) |
| Valuation Ratio | |
| EV/EBITDA | — |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Apple Inc. | 34.87 |
| Arista Networks Inc. | 51.67 |
| Cisco Systems Inc. | 22.31 |
| Dell Technologies Inc. | 27.08 |
| Super Micro Computer Inc. | 9.36 |
| EV/EBITDA, Sector | |
| Technology Hardware & Equipment | 34.98 |
| EV/EBITDA, Industry | |
| Information Technology | 37.09 |
Based on: 10-K (reporting date: 2026-06-27).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Lumentum Holdings Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Jun 27, 2026 | Jun 28, 2025 | Jun 29, 2024 | Jul 1, 2023 | Jul 2, 2022 | Jul 3, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | 85,809,330) | 9,941,504) | 5,450,720) | 4,345,106) | 5,530,910) | 5,533,228) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | (6,884,000) | 106,800) | (81,600) | 188,700) | 482,400) | 706,900) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | — | 93.09 | — | 23.03 | 11.47 | 7.83 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Apple Inc. | — | 27.97 | 25.29 | 21.66 | 19.15 | 20.47 | |
| Arista Networks Inc. | — | 38.96 | 36.90 | 31.29 | 24.52 | 37.29 | |
| Cisco Systems Inc. | 22.24 | 18.03 | 13.28 | 12.16 | 10.52 | 15.05 | |
| Dell Technologies Inc. | 10.21 | 9.41 | 11.43 | 6.61 | 4.85 | 9.32 | |
| Super Micro Computer Inc. | 9.83 | 19.68 | 21.76 | 16.77 | 10.50 | 11.19 | |
| EV/EBITDA, Sector | |||||||
| Technology Hardware & Equipment | — | 26.33 | 23.65 | 20.01 | 17.24 | 19.12 | |
| EV/EBITDA, Industry | |||||||
| Information Technology | — | 27.45 | 27.70 | 23.55 | 18.32 | 20.52 | |
Based on: 10-K (reporting date: 2026-06-27), 10-K (reporting date: 2025-06-28), 10-K (reporting date: 2024-06-29), 10-K (reporting date: 2023-07-01), 10-K (reporting date: 2022-07-02), 10-K (reporting date: 2021-07-03).
3 2026 Calculation
EV/EBITDA = EV ÷ EBITDA
= 85,809,330 ÷ -6,884,000 = —
4 Click competitor name to see calculations.
The analyzed period is characterized by a widening divergence between the enterprise valuation and operational profitability. While the enterprise value experienced an exponential surge in the final two years, the earnings before interest, tax, depreciation, and amortization exhibited significant volatility and a severe downward trajectory.
- Enterprise Value Trends
- The enterprise value remained relatively stable between 2021 and 2022, followed by a moderate decline in 2023. Starting in 2024, a strong upward trend emerged, with the value increasing to approximately 9.94 billion in 2025 and accelerating to an unprecedented 85.81 billion by 2026.
- EBITDA Performance
- A consistent decline in EBITDA is observed from 2021 through 2024, during which earnings dropped from 706.9 million to a negative value of 81.6 million. Despite a marginal recovery to 106.8 million in 2025, the metric collapsed to a substantial deficit of 6.88 billion in 2026.
- EV/EBITDA Ratio Dynamics
- The EV/EBITDA ratio expanded rapidly from 7.83 in 2021 to 23.03 in 2023, signaling a decrease in operational efficiency relative to valuation. The ratio reached an extreme peak of 93.09 in 2025. For the years 2024 and 2026, the ratio is not applicable due to negative EBITDA, reflecting periods where the enterprise operated at a loss.
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