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.Looks undervalued
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 below modeled range
Showing the FCFF (steady state) you selected on the company card, using 5.05% growth, 3.1% terminal growth and 10.8% discount. The range varies these assumptions slightly; it is illustrative, not 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 11.3% 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
Show the recommended model instead
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 167.63 (+50.0%)
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EPS-based Gordon proxy
— USD 168.14 (+50.4%)
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 167.63 (+50.0%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 153.94 (+37.7%)
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 265.39 (+137.4%)
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 167.10 (+49.5%)
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 545.97 (+388.5%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 119.59 | 6.5% |
| Base USD 153.94 | 27.4% |
| Bull USD 212.39 | 47.4% |
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.
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 +8.1% a year | 20 / 20 |
| Balance sheet | net debt 0.3x EBITDA | 20 / 20 |
| Margins | EBITDA margin 23% | 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 111.77 | 33.3% | 8.9 | 2.6 | – | 100 |
| KGF.L Kingfisher plc | GBP 3.72 | 45.2% | 27.0 | 1.1 | 3.3% | 74 |
| BWY.L Bellway p.l.c. | GBP 23.01 | 43.6% | 14.0 | 0.8 | 3.1% | 70 |
| INCH.L Inchcape plc | GBP 6.41 | 37.3% | 9.0 | 1.9 | 4.1% | 80 |
| ZAL.DE Zalando SE | EUR 27.49 | 36.6% | 108.5 | 2.6 | – | 80 |
| DECK Deckers Brands | USD 87.74 | 34.9% | 11.2 | 5.1 | – | 100 |
| EXPE Expedia Group | USD 272.48 | 29.6% | 15.8 | 20.2 | 0.7% | 100 |
| BKNG Booking Holdings | USD 168.72 | 28.9% | 17.7 | – | 1.0% | 100 |
| PETS.L Pets at Home Group Plc | GBP 2.58 | 25.2% | 18.8 | 1.2 | 2.9% | 82 |
| Peer median | 16.8 | 1.9 | ||||
Trailing 12-month financials
TTM through 31 Jul 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 14:04
| Revenue | USD 11,093,955,000 |
|---|---|
| EBITDA | USD 2,559,870,000 |
| EBIT | USD 2,020,219,000 |
| Net income | USD 1,417,977,000 |
| Free cash flow | USD 1,354,336,000 |
| Capital expenditures | USD 627,697,000 |
| Debt | USD 2,141,127,000 |
| Cash | USD 1,389,737,000 |
| Working capital | USD 2,143,936,000 |
| Shares outstanding | 112,919,000 |