LULU PE Ratio & Valuation,Is LULU Overvalued

LULU Relative Valuation

LULU's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, LULU is overvalued; if below, it's undervalued.

Historical Valuation

Lululemon Athletica Inc (LULU) is now in the Undervalued zone, suggesting that its current forward PE ratio of 17.34 is considered Undervalued compared with the five-year average of 30.71. The fair price of Lululemon Athletica Inc (LULU) is between 246.90 to 465.95 according to relative valuation methord. Compared to the current price of 212.81 USD , Lululemon Athletica Inc is Undervalued By 13.81%.

Relative Value

Fair Zone

246.90-465.95

Current Price：212.81

13.81%

Undervalued

17.34

10.28

EV/EBITDA

Lululemon Athletica Inc. (LULU) has a current EV/EBITDA of 10.28. The 5-year average EV/EBITDA is 18.84. The thresholds are as follows: Strongly Undervalued below 4.66, Undervalued between 4.66 and 11.75, Fairly Valued between 25.93 and 11.75, Overvalued between 25.93 and 33.02, and Strongly Overvalued above 33.02. The current Forward EV/EBITDA of 10.28 falls within the Undervalued range.

12.86

EV/EBIT

Lululemon Athletica Inc. (LULU) has a current EV/EBIT of 12.86. The 5-year average EV/EBIT is 22.24. The thresholds are as follows: Strongly Undervalued below 6.06, Undervalued between 6.06 and 14.15, Fairly Valued between 30.33 and 14.15, Overvalued between 30.33 and 38.43, and Strongly Overvalued above 38.43. The current Forward EV/EBIT of 12.86 falls within the Undervalued range.

2.18

Lululemon Athletica Inc. (LULU) has a current PS of 2.18. The 5-year average PS is 4.84. The thresholds are as follows: Strongly Undervalued below 1.35, Undervalued between 1.35 and 3.09, Fairly Valued between 6.59 and 3.09, Overvalued between 6.59 and 8.34, and Strongly Overvalued above 8.34. The current Forward PS of 2.18 falls within the Undervalued range.

12.60

P/OCF

Lululemon Athletica Inc. (LULU) has a current P/OCF of 12.60. The 5-year average P/OCF is 26.77. The thresholds are as follows: Strongly Undervalued below 3.93, Undervalued between 3.93 and 15.35, Fairly Valued between 38.19 and 15.35, Overvalued between 38.19 and 49.61, and Strongly Overvalued above 49.61. The current Forward P/OCF of 12.60 falls within the Undervalued range.

20.55

P/FCF

Lululemon Athletica Inc. (LULU) has a current P/FCF of 20.55. The 5-year average P/FCF is 43.16. The thresholds are as follows: Strongly Undervalued below -0.58, Undervalued between -0.58 and 21.29, Fairly Valued between 65.03 and 21.29, Overvalued between 65.03 and 86.90, and Strongly Overvalued above 86.90. The current Forward P/FCF of 20.55 falls within the Undervalued range.

Lululemon Athletica Inc (LULU) has a current Price-to-Book (P/B) ratio of 5.52. Compared to its 3-year average P/B ratio of 10.69 , the current P/B ratio is approximately -48.34% higher. Relative to its 5-year average P/B ratio of 13.08, the current P/B ratio is about -57.80% higher. Lululemon Athletica Inc (LULU) has a Forward Free Cash Flow (FCF) yield of approximately 4.56%. Compared to its 3-year average FCF yield of 3.40%, the current FCF yield is approximately 34.09% lower. Relative to its 5-year average FCF yield of 2.63% , the current FCF yield is about 73.75% lower.

5.52

P/B

Median3y

10.69

Median5y

13.08

4.56

FCF Yield

Median3y

3.40

Median5y

2.63

Competitors Valuation Multiple

The average P/S ratio for LULU's competitors is 2.36, providing a benchmark for relative valuation. Lululemon Athletica Inc Corp (LULU) exhibits a P/S ratio of 2.18, which is -7.71% above the industry average. Given its robust revenue growth of 7.06%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of LULU decreased by 48.88% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.40B to 2.57B.

The secondary factor is the Margin Expansion, contributed -18.53%to the performance.

Overall, the performance of LULU in the past 1 year is driven by Revenue Growth. Which is more sustainable.

7.06%

2.40B → 2.57B

Revenue Growth

-18.53%

14.68 → 11.96

Margin Expansion

-37.41%

23.26 → 14.56

P/E Change

-48.88%

414.20 → 211.72

Mkt Cap Growth

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Frequently Asked Questions

Is Lululemon Athletica Inc (LULU) currently overvalued or undervalued?

What is Lululemon Athletica Inc (LULU) fair value?

LULU's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Lululemon Athletica Inc (LULU) is between 246.90 to 465.95 according to relative valuation methord.

How does LULU's valuation metrics compare to the industry average?

What is the current P/B ratio for Lululemon Athletica Inc (LULU) as of Jan 08 2026?

As of Jan 08 2026, Lululemon Athletica Inc (LULU) has a P/B ratio of 5.52. This indicates that the market values LULU at 5.52 times its book value.

What is the current FCF Yield for Lululemon Athletica Inc (LULU) as of Jan 08 2026?

As of Jan 08 2026, Lululemon Athletica Inc (LULU) has a FCF Yield of 4.56%. This means that for every dollar of Lululemon Athletica Inc’s market capitalization, the company generates 4.56 cents in free cash flow.

What is the current Forward P/E ratio for Lululemon Athletica Inc (LULU) as of Jan 08 2026?

As of Jan 08 2026, Lululemon Athletica Inc (LULU) has a Forward P/E ratio of 17.34. This means the market is willing to pay $17.34 for every dollar of Lululemon Athletica Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Lululemon Athletica Inc (LULU) as of Jan 08 2026?

As of Jan 08 2026, Lululemon Athletica Inc (LULU) has a Forward P/S ratio of 2.18. This means the market is valuing LULU at $2.18 for every dollar of expected revenue over the next 12 months.

LULU Valuation