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Is this Large Market Cap Stock target price reasonable for Lumentum Holdings Inc. (NASDAQ:LITE)?

The company in question is, Lumentum Holdings Inc. (NASDAQ:LITE) currently with a stock price of 40.84 (0.27% today). The market cap for Lumentum Holdings Inc. is 2460.91, and is in the sector Technology, and Communication Equipment industry. The target price for Lumentum Holdings Inc. is 42.38. Currently Lumentum Holdings Inc. is trading with a P/E of *TBA, and a forward P/E of 17.9. Average volume for Lumentum Holdings Inc. is 956.75 and so far today it is 204781.

Performance in the last year for Lumentum Holdings Inc. has been 181.87%. For EPS growth, Lumentum Holdings Inc. has seen a growth of 6.30%, and is looking to grow in the next year to 20.69%. More long term stats show that EPS growth has been *TBA over the last five years and could be 20.00% for the next five years. Lumentum Holdings Inc. has seen sales growth quarter over quarter at 15.70%, with EPS growth quarter over quarter at 242.40%. The 20-day simple moving average is 9.50%, with the 200-day simple moving average coming to 47.77%.

Since the IPO date for Lumentum Holdings Inc. on the 7/23/2015, Lumentum Holdings Inc. has seen performance year to date to be 84.97%. With Lumentum Holdings Inc. trading at 40.84, the dividend yield is *TBA, and the EPS is -0.06.

So could Lumentum Holdings Inc., be undervalued? Well as said before P/E is *TBA. The PEG is *TBA, P/S is 2.73 and the P/B is at 4.87. The P/cash is 15.66, with P/free cash flow at 534.98.

Lumentum Holdings Inc. ability to deal with debt shows that the current ratio is 2.8, and the quick ratio is 2.2. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Lumentum Holdings Inc. has a gross margin of 30.70%, an operating margin of 1.30% and a profit margin of -0.40%.Payout ratio for Lumentum Holdings Inc. is *TBA. Return on assets come to -0.50% with return on investment coming to 2.20%.

Insider ownership for Lumentum Holdings Inc., is at 9.30% and institutional ownership comes to 77.20%. Outstanding shares are at 60.42. While shares float is 54.64. The float short is currently 5.67%, and short ratio is 3.24.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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