
LULU Valuation
Lululemon Athletica Inc
- Overview
- Forecast
- Valuation
- Earnings
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 14.85 is considered Undervalued compared with the five-year average of 34.97. The fair price of Lululemon Athletica Inc (LULU) is between 328.32 to 642.45 according to relative valuation methord. Compared to the current price of 219.43 USD , Lululemon Athletica Inc is Undervalued By 33.17%.
Relative Value
Fair Zone
328.32-642.45
Current Price:219.43
33.17%
Undervalued
14.85
PE
1Y
3Y
5Y
Trailing
Forward
8.90
EV/EBITDA
Lululemon Athletica Inc. (LULU) has a current EV/EBITDA of 8.90. The 5-year average EV/EBITDA is 21.38. The thresholds are as follows: Strongly Undervalued below 5.37, Undervalued between 5.37 and 13.37, Fairly Valued between 29.39 and 13.37, Overvalued between 29.39 and 37.39, and Strongly Overvalued above 37.39. The current Forward EV/EBITDA of 8.90 falls within the Undervalued range.
10.86
EV/EBIT
Lululemon Athletica Inc. (LULU) has a current EV/EBIT of 10.86. The 5-year average EV/EBIT is 25.27. The thresholds are as follows: Strongly Undervalued below 6.10, Undervalued between 6.10 and 15.69, Fairly Valued between 34.86 and 15.69, Overvalued between 34.86 and 44.45, and Strongly Overvalued above 44.45. The current Forward EV/EBIT of 10.86 falls within the Undervalued range.
2.31
PS
Lululemon Athletica Inc. (LULU) has a current PS of 2.31. The 5-year average PS is 5.50. The thresholds are as follows: Strongly Undervalued below 1.68, Undervalued between 1.68 and 3.59, Fairly Valued between 7.41 and 3.59, Overvalued between 7.41 and 9.32, and Strongly Overvalued above 9.32. The current Forward PS of 2.31 falls within the Undervalued range.
12.33
P/OCF
Lululemon Athletica Inc. (LULU) has a current P/OCF of 12.33. The 5-year average P/OCF is 29.93. The thresholds are as follows: Strongly Undervalued below 6.77, Undervalued between 6.77 and 18.35, Fairly Valued between 41.51 and 18.35, Overvalued between 41.51 and 53.09, and Strongly Overvalued above 53.09. The current Forward P/OCF of 12.33 falls within the Undervalued range.
17.49
P/FCF
Lululemon Athletica Inc. (LULU) has a current P/FCF of 17.49. The 5-year average P/FCF is 48.01. The thresholds are as follows: Strongly Undervalued below 5.00, Undervalued between 5.00 and 26.51, Fairly Valued between 69.51 and 26.51, Overvalued between 69.51 and 91.02, and Strongly Overvalued above 91.02. The current Forward P/FCF of 17.49 falls within the Undervalued range.
Lululemon Athletica Inc (LULU) has a current Price-to-Book (P/B) ratio of 6.14. Compared to its 3-year average P/B ratio of 12.07 , the current P/B ratio is approximately -49.12% higher. Relative to its 5-year average P/B ratio of 14.62, the current P/B ratio is about -57.99% higher. Lululemon Athletica Inc (LULU) has a Forward Free Cash Flow (FCF) yield of approximately 5.01%. Compared to its 3-year average FCF yield of 2.66%, the current FCF yield is approximately 88.00% lower. Relative to its 5-year average FCF yield of 2.23% , the current FCF yield is about 124.69% lower.
6.14
P/B
Median3y
12.07
Median5y
14.62
5.01
FCF Yield
Median3y
2.66
Median5y
2.23
Competitors Valuation Multiple
The average P/S ratio for LULU's competitors is 3.03, providing a benchmark for relative valuation. Lululemon Athletica Inc Corp (LULU) exhibits a P/S ratio of 2.31, which is -23.72% above the industry average. Given its robust revenue growth of 0.00%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Performance Decomposition
1Y
3Y
5Y
Market capitalization of LULU decreased by 15.17% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.21B to 2.37B.
The secondary factor is the Margin Expansion, contributed -8.80%to the performance.
Overall, the performance of LULU in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ

Is Lululemon Athletica Inc (LULU) currently overvalued or undervalued?
Lululemon Athletica Inc (LULU) is now in the Undervalued zone, suggesting that its current forward PE ratio of 14.85 is considered Undervalued compared with the five-year average of 34.97. The fair price of Lululemon Athletica Inc (LULU) is between 328.32 to 642.45 according to relative valuation methord. Compared to the current price of 219.43 USD , Lululemon Athletica Inc is Undervalued By 33.17% .

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 Jul 28 2025?

What is the current FCF Yield for Lululemon Athletica Inc (LULU) as of Jul 28 2025?

What is the current Forward P/E ratio for Lululemon Athletica Inc (LULU) as of Jul 28 2025?
