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 15.20 is considered Undervalued compared with the five-year average of 31.45. The fair price of Lululemon Athletica Inc (LULU) is between 241.56 to 466.12 according to relative valuation methord. Compared to the current price of 182.30 USD , Lululemon Athletica Inc is Undervalued By 24.53%.
Relative Value
Fair Zone
241.56-466.12
Current Price：182.30
24.53%
Undervalued
15.31
PE
1Y
3Y
5Y
Trailing
Forward
8.85
EV/EBITDA
Lululemon Athletica Inc. (LULU) has a current EV/EBITDA of 8.85. The 5-year average EV/EBITDA is 19.29. The thresholds are as follows: Strongly Undervalued below 4.58, Undervalued between 4.58 and 11.94, Fairly Valued between 26.65 and 11.94, Overvalued between 26.65 and 34.01, and Strongly Overvalued above 34.01. The current Forward EV/EBITDA of 8.85 falls within the Undervalued range.
11.27
EV/EBIT
Lululemon Athletica Inc. (LULU) has a current EV/EBIT of 11.27. The 5-year average EV/EBIT is 22.79. The thresholds are as follows: Strongly Undervalued below 5.81, Undervalued between 5.81 and 14.30, Fairly Valued between 31.27 and 14.30, Overvalued between 31.27 and 39.76, and Strongly Overvalued above 39.76. The current Forward EV/EBIT of 11.27 falls within the Undervalued range.
1.94
PS
Lululemon Athletica Inc. (LULU) has a current PS of 1.94. The 5-year average PS is 4.96. The thresholds are as follows: Strongly Undervalued below 1.36, Undervalued between 1.36 and 3.16, Fairly Valued between 6.77 and 3.16, Overvalued between 6.77 and 8.57, and Strongly Overvalued above 8.57. The current Forward PS of 1.94 falls within the Undervalued range.
11.13
P/OCF
Lululemon Athletica Inc. (LULU) has a current P/OCF of 11.13. The 5-year average P/OCF is 27.41. The thresholds are as follows: Strongly Undervalued below 4.13, Undervalued between 4.13 and 15.77, Fairly Valued between 39.04 and 15.77, Overvalued between 39.04 and 50.68, and Strongly Overvalued above 50.68. The current Forward P/OCF of 11.13 falls within the Undervalued range.
16.35
P/FCF
Lululemon Athletica Inc. (LULU) has a current P/FCF of 16.35. The 5-year average P/FCF is 44.01. The thresholds are as follows: Strongly Undervalued below 0.07, Undervalued between 0.07 and 22.04, Fairly Valued between 65.97 and 22.04, Overvalued between 65.97 and 87.94, and Strongly Overvalued above 87.94. The current Forward P/FCF of 16.35 falls within the Undervalued range.
Lululemon Athletica Inc (LULU) has a current Price-to-Book (P/B) ratio of 4.94. Compared to its 3-year average P/B ratio of 10.93 , the current P/B ratio is approximately -54.80% higher. Relative to its 5-year average P/B ratio of 13.37, the current P/B ratio is about -63.04% higher. Lululemon Athletica Inc (LULU) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.27%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.56% , the current FCF yield is about -100.00% lower.
4.98
P/B
Median3y
10.93
Median5y
13.37
5.40
FCF Yield
Median3y
3.27
Median5y
2.56
Competitors Valuation Multiple
The average P/S ratio for LULU's competitors is , providing a benchmark for relative valuation. Lululemon Athletica Inc Corp (LULU) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 6.50%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of LULU decreased by 51.99% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.37B to 2.53B.
The secondary factor is the Margin Expansion, contributed -11.35%to the performance.
Overall, the performance of LULU in the past 1 year is driven by Revenue Growth. Which is more sustainable.
People Also Watch
FAQ
Is Lululemon Athletica Inc (LULU) currently overvalued or undervalued?
What is Lululemon Athletica Inc (LULU) fair value?
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 Dec 05 2025?
What is the current FCF Yield for Lululemon Athletica Inc (LULU) as of Dec 05 2025?
What is the current Forward P/E ratio for Lululemon Athletica Inc (LULU) as of Dec 05 2025?