Lumentum Holdings Inc., FCFE calculation

US$ in thousands

12 months ended:	Jun 27, 2026	Jun 28, 2025	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021
Net income (loss)	(6,935,100)	25,900)	(546,500)	(131,600)	198,900)	397,300)
Net noncash charges	7,978,500)	261,800)	582,500)	448,000)	351,000)	339,900)
Changes in operating assets and liabilities	(292,000)	(161,400)	(11,300)	(136,600)	(90,600)	1,500)
Net cash provided by operating activities	751,400)	126,300)	24,700)	179,800)	459,300)	738,700)
Payments for acquisition of property, plant and equipment	(451,300)	(231,000)	(133,000)	(128,500)	(91,200)	(84,800)
Payment for acquisition of intangible assets	—)	—)	(4,000)	—)	—)	—)
Proceeds from the sales of property and equipment	42,400)	300)	800)	300)	6,400)	23,300)
Proceeds from the issuance of 2032 Notes, net of issuance costs	1,254,700)	—)	—)	—)	—)	—)
Proceeds from the issuance of 2029 Notes, net of issuance costs	—)	—)	—)	599,400)	—)	—)
Proceeds from the issuance of 2028 Notes, net of issuance costs	—)	—)	—)	—)	854,100)	—)
Proceeds from term loans	47,900)	76,500)	—)	—)	—)	—)
Payment for partial repurchase of 2026 Notes	(843,100)	—)	—)	—)	—)	—)
Cash paid for conversions of convertible notes	(520,000)	—)	—)	—)	—)	—)
Payment, repurchase and conversion of 2024 Notes	—)	—)	(323,100)	(132,800)	(1,800)	—)
Payment for 2032 capped call options	(102,000)	—)	—)	—)	—)	—)
Principal payments on term loans	(14,000)	(8,100)	—)	(5,900)	—)	—)
Payment for financing costs related to revolving credit facility	(2,400)	—)	—)	—)	—)	—)
Principal payments on finance leases	—)	—)	—)	—)	—)	(500)
Free cash flow to equity (FCFE)	163,600)	(36,000)	(434,600)	512,300)	1,226,800)	676,700)

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 performance exhibits a period of significant volatility in cash generation, characterized by a sharp contraction between 2021 and 2024, followed by a projected recovery through 2026.

Operating Cash Flow Trends: Net cash provided by operating activities demonstrates a consistent downward trajectory from July 3, 2021, reaching a nadir of 24.7 million US dollars by June 29, 2024. This represents a substantial decline from the 738.7 million US dollars reported at the start of the period. However, a recovery phase is evident in the subsequent years, with a projected increase to 126.3 million US dollars in 2025 and a significant rebound to 751.4 million US dollars by June 27, 2026.
Free Cash Flow to Equity (FCFE) Volatility: FCFE exhibits more extreme fluctuations than operating cash flows. After peaking at 1.23 billion US dollars in July 2, 2022, FCFE declined sharply, entering negative territory in June 29, 2024, with a deficit of 434.6 million US dollars. The negative trend persisted into June 28, 2025, although the deficit narrowed to 36 million US dollars. A return to positive cash flow to equity is observed by June 27, 2026, with a value of 163.6 million US dollars.
Analysis of Cash Flow Divergence: A notable divergence occurred between 2021 and 2022, where operating cash flows decreased while FCFE nearly doubled. This suggests that the increase in equity cash flow during this period was driven by factors other than operations, such as new debt issuance or a reduction in capital expenditures. Conversely, the period between 2024 and 2025 shows FCFE remaining negative despite positive operating cash flows, indicating that capital expenditures or debt repayments exceeded the cash generated from core business operations during those years.

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Lumentum Holdings Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	89,700,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	163,600)
FCFE per share	1.82
Current share price (P)	914.76
Valuation Ratio
P/FCFE	501.55
Benchmarks
P/FCFE, Competitors¹
Apple Inc.	51.22
Arista Networks Inc.	58.04
Cisco Systems Inc.	41.57
Dell Technologies Inc.	19.66
Super Micro Computer Inc.	5.52
P/FCFE, Sector
Technology Hardware & Equipment	52.07
P/FCFE, Industry
Information Technology	59.69

Based on: 10-K (reporting date: 2026-06-27).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Lumentum Holdings Inc., historical P/FCFE calculation, comparison to benchmarks

	Jun 27, 2026	Jun 28, 2025	Jun 29, 2024	Jul 1, 2023	Jul 2, 2022	Jul 3, 2021
No. shares of common stock outstanding¹	89,700,000	69,900,000	68,000,000	66,700,000	68,100,000	72,700,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	163,600)	(36,000)	(434,600)	512,300)	1,226,800)	676,700)
FCFE per share³	1.82	-0.52	-6.39	7.68	18.01	9.31
Share price^1, 4	968.90	117.96	56.39	53.18	91.10	86.64
Valuation Ratio
P/FCFE⁵	531.24	—	—	6.92	5.06	9.31
Benchmarks
P/FCFE, Competitors⁶
Apple Inc.	—	44.25	32.77	30.63	22.26	23.27
Arista Networks Inc.	—	42.13	35.65	41.51	96.72	42.05
Cisco Systems Inc.	—	25.54	6.64	12.84	17.18	21.02
Dell Technologies Inc.	6.72	123.86	32.94	9.06	33.54	14.15
Super Micro Computer Inc.	—	6.44	—	41.38	139.27	13.81
P/FCFE, Sector
Technology Hardware & Equipment	—	41.47	27.73	27.33	22.05	22.76
P/FCFE, Industry
Information Technology	—	45.06	36.66	33.12	26.68	27.39

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).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2026 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 163,600,000 ÷ 89,700,000 = 1.82

⁴ Closing price as at the filing date of Lumentum Holdings Inc. Annual Report.

⁵ 2026 Calculation
P/FCFE = Share price ÷ FCFE per share
= 968.90 ÷ 1.82 = 531.24

⁶ Click competitor name to see calculations.

An analysis of the valuation metrics reveals significant volatility in both share price and Free Cash Flow to Equity (FCFE) per share over the observed period. The relationship between market pricing and cash generation shows a stark divergence, particularly in the final period of the analysis.

Share Price Trajectory: The share price exhibited moderate fluctuation between 2021 and 2024, reaching a low of 53.18 in 2023 before recovering to 56.39 in 2024. A sharp upward acceleration occurred in 2025, with the price rising to 117.96, followed by an exponential increase to 968.90 by June 2026.
Free Cash Flow to Equity (FCFE) per Share: FCFE per share peaked at 18.01 in 2022 but subsequently entered a period of decline. The metric turned negative in 2024 and 2025, reaching a low of -6.39. While a return to positive territory is observed in 2026 at 1.82, this value represents a significant decrease compared to the levels maintained between 2021 and 2023.
Price to FCFE (P/FCFE) Ratio: The P/FCFE ratio remained relatively stable and compressed between 5.06 and 9.31 from 2021 to 2023, indicating a valuation closely tied to cash flow generation. The ratio became non-calculable during 2024 and 2025 due to negative FCFE. By 2026, the ratio expanded drastically to 531.24, signifying a severe decoupling of the share price from the underlying free cash flow to equity.

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Lumentum Holdings Inc. (NASDAQ:LITE)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical