Lululemon Athletica
lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China, Hong Kong, Taiwan, Macau, Greece, and internationally. It offers…
lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China, Hong Kong, Taiwan, Macau, Greece, and internationally. It offers pants, shorts, tops, and jackets for athletic activities, such as yoga, running, training, and other activities. The company also provides fitness-inspired accessories. It sells its products through company-operated stores; seasonal stores, pop-ups, university campus retailers, and yoga and fitness studios; outlets; Like New, a re-commerce program; and its e-commerce website. The company was founded in 1998 and is based in Vancouver, Canada.Priced within the modelled range
Other models: USD 103.65–272.80 (median 177.58). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price within modeled range
Free-cash-flow DCF using Fiscal year 2026 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 5.05% growth, 3.1% terminal growth, and 10.8% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 5.05%, discount rate 10.80%, terminal growth 3.10% (sector defaults). See a worked example.
Blended growth assumption: 5.0% (sector default 7.2%, own revenue history 15.4%, analyst revenue consensus -1.2%).
5-year outlook: relative outlook of about 8.1% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of -1.2% a year; the growth assumption used is 5.1%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 112.48 (+2.7%)
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EPS-based Gordon proxy
— USD 177.58 (+62.1%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 112.48 (+2.7%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 103.65 (-5.4%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 272.80 (+149.1%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 112.14 (+2.4%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 548.85 (+401.1%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 84.72 | -29.3% |
| Base USD 112.48 | 2.6% |
| Bull USD 160.42 | 31.7% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 109.52 the market implies about this annual free-cash-flow growth for 5 years (terminal 3.1%, discount 10.8%).
Compare: the market implies 4.4% a year, this model assumes 5.1%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 8.8% | 9.8% | 10.8% | 11.8% | 12.8% |
|---|---|---|---|---|---|
| 1.0% | 127.94 | 109.02 | 95.00 | 84.21 | 75.63 |
| 3.1% | 139.71 | 118.86 | 103.43 | 91.54 | 82.11 |
| 5.1% | 152.37 | 129.45 | 112.48 | 99.42 | 89.06 |
| 7.1% | 165.98 | 140.82 | 122.20 | 107.87 | 96.51 |
| 9.1% | 180.60 | 153.02 | 132.62 | 116.93 | 104.49 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 100 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +15.4% a year | 20 / 20 |
| Margins | EBITDA margin 24% | 20 / 20 |
Peers in Consumer Discretionary
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| LULU (this company) | USD 109.52 | 2.6% | 8.3 | 2.6 | – | 100 |
| KGF.L Kingfisher plc | GBP 3.70 | 45.5% | 26.8 | 1.1 | 3.3% | 74 |
| BWY.L Bellway p.l.c. | GBP 22.72 | 44.3% | 13.8 | 0.8 | 3.1% | 70 |
| DKNG DraftKings Inc. | USD 17.16 | 39.2% | – | 13.5 | – | 58 |
| INCH.L Inchcape plc | GBP 6.33 | 38.1% | 8.8 | 1.9 | 4.2% | 80 |
| ZAL.DE Zalando SE | EUR 27.37 | 36.9% | 108.0 | 2.6 | – | 80 |
| DECK Deckers Brands | USD 85.74 | 36.4% | 10.9 | 5.0 | – | 100 |
| CVNA Carvana | USD 71.95 | 34.6% | 9.5 | 3.7 | – | 87 |
| EXPE Expedia Group | USD 268.04 | 30.8% | 15.6 | 19.8 | 0.7% | 100 |
| Peer median | 13.8 | 3.2 | ||||
Annual financial statement
Saved annual report · Fiscal year 2026 · SEC EDGAR annual filings · period ended 01 Feb 2026
| Revenue | USD 11,102,600,000 |
|---|---|
| EBITDA | USD 2,706,843,000 |
| EBIT | USD 2,210,615,000 |
| Net income | USD 1,579,183,000 |
| Free cash flow | USD 921,675,000 |
| Capital expenditures | USD -680,802,000 |
| Debt | USD |
| Cash | USD |
| Working capital | USD 2,375,153,000 |
| Shares outstanding | 119,068,000 |