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 13.95 is considered Undervalued compared with the five-year average of 31.92. The fair price of Lululemon Athletica Inc (LULU) is between 235.99 to 459.92 according to relative valuation methord. Compared to the current price of 164.16 USD , Lululemon Athletica Inc is Undervalued By 30.44%.
Relative Value
Fair Zone
235.99-459.92
Current Price：164.16
30.44%
Undervalued
13.48
PE
1Y
3Y
5Y
Trailing
Forward
7.69
EV/EBITDA
Lululemon Athletica Inc. (LULU) has a current EV/EBITDA of 7.69. The 5-year average EV/EBITDA is 19.76. The thresholds are as follows: Strongly Undervalued below 5.04, Undervalued between 5.04 and 12.40, Fairly Valued between 27.12 and 12.40, Overvalued between 27.12 and 34.48, and Strongly Overvalued above 34.48. The current Forward EV/EBITDA of 7.69 falls within the Undervalued range.
10.43
EV/EBIT
Lululemon Athletica Inc. (LULU) has a current EV/EBIT of 10.43. The 5-year average EV/EBIT is 23.33. The thresholds are as follows: Strongly Undervalued below 6.23, Undervalued between 6.23 and 14.78, Fairly Valued between 31.88 and 14.78, Overvalued between 31.88 and 40.43, and Strongly Overvalued above 40.43. The current Forward EV/EBIT of 10.43 falls within the Undervalued range.
164.16
PS
Lululemon Athletica Inc. (LULU) has a current PS of 164.16. The 5-year average PS is 7.09. The thresholds are as follows: Strongly Undervalued below -28.92, Undervalued between -28.92 and -10.91, Fairly Valued between 25.10 and -10.91, Overvalued between 25.10 and 43.11, and Strongly Overvalued above 43.11. The current Forward PS of 164.16 falls within the Strongly Overvalued range.
10.42
P/OCF
Lululemon Athletica Inc. (LULU) has a current P/OCF of 10.42. The 5-year average P/OCF is 28.09. The thresholds are as follows: Strongly Undervalued below 4.95, Undervalued between 4.95 and 16.52, Fairly Valued between 39.66 and 16.52, Overvalued between 39.66 and 51.22, and Strongly Overvalued above 51.22. The current Forward P/OCF of 10.42 falls within the Undervalued range.
15.31
P/FCF
Lululemon Athletica Inc. (LULU) has a current P/FCF of 15.31. The 5-year average P/FCF is 45.07. The thresholds are as follows: Strongly Undervalued below 1.51, Undervalued between 1.51 and 23.29, Fairly Valued between 66.84 and 23.29, Overvalued between 66.84 and 88.62, and Strongly Overvalued above 88.62. The current Forward P/FCF of 15.31 falls within the Undervalued range.
Lululemon Athletica Inc (LULU) has a current Price-to-Book (P/B) ratio of 4.63. Compared to its 3-year average P/B ratio of 11.08 , the current P/B ratio is approximately -58.23% higher. Relative to its 5-year average P/B ratio of 13.52, the current P/B ratio is about -65.77% higher. Lululemon Athletica Inc (LULU) has a Forward Free Cash Flow (FCF) yield of approximately 5.77%. Compared to its 3-year average FCF yield of 3.19%, the current FCF yield is approximately 80.74% lower. Relative to its 5-year average FCF yield of 2.52% , the current FCF yield is about 129.33% lower.
4.45
P/B
Median3y
11.08
Median5y
13.52
0.06
FCF Yield
Median3y
3.19
Median5y
2.52
Competitors Valuation Multiple
The average P/S ratio for LULU's competitors is 113.36, providing a benchmark for relative valuation. Lululemon Athletica Inc Corp (LULU) exhibits a P/S ratio of 164.16, which is 44.81% 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 48.81% 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.
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