Lumen Technologies, Inc.

NYSE:LUMN Stock Report

Market Cap: US$8.7b

Lumen Technologies Valuation

Is LUMN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LUMN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate LUMN's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate LUMN's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LUMN?

Key metric: As LUMN is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for LUMN. This is calculated by dividing LUMN's market cap by their current revenue.
What is LUMN's PS Ratio?
PS Ratio0.7x
SalesUS$13.30b
Market CapUS$8.67b

Price to Sales Ratio vs Peers

How does LUMN's PS Ratio compare to its peers?

The above table shows the PS ratio for LUMN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average5.6x
LBTY.A Liberty Global
0.6x0.6%US$4.4b
IRDM Iridium Communications
4x4.0%US$3.2b
CCOI Cogent Communications Holdings
3.9x7.3%US$3.8b
GSAT Globalstar
14.1x2.8%US$3.4b
LUMN Lumen Technologies
0.7x-2.7%US$8.7b

Price-To-Sales vs Peers: LUMN is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (5.6x).

Price to Sales Ratio vs Industry

How does LUMN's PS Ratio compare vs other companies in the US Telecom Industry?

12 CompaniesPrice / SalesEstimated GrowthMarket Cap
LILA Liberty Latin America
0.3x3.4%US$1.27b
ATNI ATN International
0.4x-0.1%US$287.11m
SIFY Sify Technologies
0.2x27.0%US$82.19m
IQST iQSTEL
0.1xn/aUS$30.71m
LUMN 0.7xIndustry Avg. 1.3xNo. of Companies12PS01.63.24.86.48+
12 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LUMN is good value based on its Price-To-Sales Ratio (0.7x) compared to the US Telecom industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is LUMN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LUMN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: LUMN is expensive based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LUMN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$8.54
US$5.09
-40.4%
25.5%US$6.83US$2.00n/a10
Nov ’25US$7.00
US$5.04
-28.0%
28.9%US$7.00US$2.00n/a10
Oct ’25US$6.71
US$4.77
-28.9%
36.9%US$7.00US$1.75n/a10
Sep ’25US$5.25
US$4.77
-9.2%
36.9%US$7.00US$1.75n/a10
Aug ’25US$3.32
US$1.55
-53.3%
28.1%US$2.50US$1.00n/a9
Jul ’25US$1.11
US$1.55
+39.6%
28.1%US$2.50US$1.00n/a9
Jun ’25US$1.29
US$1.55
+20.2%
28.1%US$2.50US$1.00n/a9
May ’25US$1.21
US$1.57
+29.8%
24.6%US$2.50US$1.00n/a10
Apr ’25US$1.46
US$1.72
+17.6%
39.4%US$3.50US$1.00n/a9
Mar ’25US$1.62
US$1.77
+9.0%
41.2%US$3.50US$1.00n/a10
Feb ’25US$1.28
US$1.92
+49.6%
58.4%US$5.00US$1.00n/a10
Jan ’25US$1.83
US$1.92
+4.6%
58.4%US$5.00US$1.00n/a10
Dec ’24US$1.48
US$1.95
+31.8%
56.5%US$5.00US$1.00n/a10
Nov ’24US$0.98
US$2.20
+124.5%
49.8%US$5.00US$1.00US$7.0010
Oct ’24US$1.42
US$2.78
+95.4%
36.2%US$5.00US$1.50US$6.7110
Sep ’24US$1.58
US$2.94
+85.8%
33.4%US$5.00US$1.50US$5.2510
Aug ’24US$2.03
US$3.19
+56.9%
28.7%US$5.00US$2.00US$3.3210
Jul ’24US$2.26
US$3.44
+52.3%
34.5%US$6.00US$2.00US$1.1111
Jun ’24US$1.95
US$3.67
+88.1%
33.4%US$6.00US$2.00US$1.2911
May ’24US$2.38
US$4.43
+85.9%
22.4%US$6.00US$2.50US$1.2112
Apr ’24US$2.65
US$5.28
+99.1%
39.6%US$10.00US$2.50US$1.4612
Mar ’24US$3.23
US$5.57
+72.3%
34.4%US$10.00US$3.50US$1.6212
Feb ’24US$5.36
US$7.00
+30.7%
33.7%US$14.00US$5.00US$1.2812
Jan ’24US$5.22
US$7.40
+41.8%
30.3%US$14.00US$5.00US$1.8312
Dec ’23US$5.59
US$7.60
+36.0%
30.7%US$14.00US$5.00US$1.4810
Nov ’23US$7.43
US$9.32
+25.4%
31.2%US$16.00US$6.00US$0.9811

Analyst Forecast: Target price is lower than the current share price.

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