Lumentum Holdings Stock Fair Value – Lumentum Holdings to Acquire Cloud Light for $750 Million

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Lumentum Holdings ($NASDAQ:LITE), Inc. is a leading provider of innovative optical and photonic products and solutions for a wide range of commercial and industrial applications. Recently, the company has announced that it is set to acquire Cloud Light, a leader in 3D sensing technology, for a total of $750 million. With this strategic acquisition, Lumentum Holdings is looking to expand its reach into the industrial markets as well as add new innovative capabilities to its already impressive portfolio of products and services. The acquisition is expected to provide Lumentum Holdings with a comprehensive suite of 3D sensing solutions that include both software and hardware components. Cloud Light’s products and services are used in multiple industries, ranging from automotive to retail and healthcare. This acquisition will enable Lumentum Holdings to leverage these technologies across various markets and create new opportunities for growth.

Additionally, the acquisition will allow Lumentum Holdings to offer more comprehensive solutions to its existing customers. Cloud Light’s expertise in the complex 3D sensing technology will be a valuable asset for Lumentum Holdings, allowing it to provide enhanced products to its customers. This acquisition is expected to strengthen Lumentum Holdings’ position in the global 3D sensing market and help it remain competitive in the industry.

Stock Price

On Thursday, Lumentum Holdings announced that it will be acquiring Cloud Light for $750 million. In response to the news, Lumentum Holdings stock opened at $39.7 and closed at $40.4, up by 4.5% from previous closing price of 38.7. This represents a significant move by Lumentum Holdings to further expand its portfolio of optical and photonic products and services.

The acquisition is expected to strengthen Lumentum Holdings’ position as a leader in the industry, as it combines Cloud Light’s strong presence in the optical components market with Lumentum’s already impressive range of products and services. It is also expected to result in a boost to the company’s revenue stream and increase its global reach. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

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Analysis – Lumentum Holdings Stock Fair Value

We at GoodWhale conducted an analysis on the wellbeing of LUMENTUM HOLDINGS, and we’re excited to share our findings with you. After evaluating LUMENTUM HOLDINGS using our proprietary Valuation Line, we determined the intrinsic value of their shares to be around $61.5. Currently, the stock is trading at $40.4, which is a 34.3% undervaluation. This presents an excellent opportunity for investors who are interested in taking advantage of this undervaluation. More…

Peers

The company’s products are used in a variety of applications, including fiber-optic telecommunications, data communications, industrial lasers, and medical lasers.

– Advanced Fiber Resources (Zhuhai) Ltd ($SZSE:300620)

Advanced Fiber Resources (Zhuhai) Ltd is a leading manufacturer of advanced fiber-based products and materials. The company has a market cap of 6.59B as of 2022 and a return on equity of 5.23%. Advanced Fiber Resources (Zhuhai) Ltd manufactures a wide range of products, including fiber optic cable, data center equipment, and telecommunications equipment. The company’s products are used in a variety of applications, including data communications, computing, and networking.

– APAC Opto Electronics Inc ($TPEX:4908)

PAC Opto Electronics Inc is a Taiwanese company that manufactures and sells opto-electronic products. The company has a market cap of 2.39B as of 2022 and a Return on Equity of 12.6%. PAC Opto Electronics Inc’s products include semiconductor lasers, light emitting diodes, photo detectors, and optical communication components. The company’s products are used in a variety of applications including telecommunications, data storage, industrial, and medical.

– Cowell e Holdings Inc ($SEHK:01415)

Cowell e Holdings Inc is a holding company that operates through its subsidiaries. The company has a market cap of 10.95B as of 2022 and a ROE of 13.79%. The company’s subsidiaries engage in the business of providing financial services, including banking, lending, and investing. The company’s operations are conducted through its subsidiaries, which include Cowell e Bank, Cowell e Credit Union, and Cowell e Investment Services.

Summary

Lumentum Holdings has made a strategic move to invest $750 million in Cloud Light, a supplier of optical and virtualized network services. This acquisition has been seen as a positive sign by investors, with Lumentum’s share prices moving up on the same day of the announcement. Analysts expect that the merger will offer Lumentum a competitive advantage within the telecom industry, as well as improved network infrastructure and increased market penetration.

Additionally, Cloud Light’s data-driven network solutions will provide Lumentum with greater opportunities to optimize its operational performance. In the short-term, investors should expect Lumentum to benefit from this merger in terms of financial growth, increased customer base, and improved efficiency. It is likely that Lumentum’s stock price will remain strong in the near future as a result of this acquisition.