LULU Valuation

Lululemon Athletica Inc

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163.550

-4.04(-2.411%)1D

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 13.70 is considered Undervalued compared with the five-year average of 32.19. The fair price of Lululemon Athletica Inc (LULU) is between 246.19 to 480.03 according to relative valuation methord. Compared to the current price of 167.59 USD , Lululemon Athletica Inc is Undervalued By 31.93%.

Relative Value

Fair Zone

246.19-480.03

Current Price：167.59

31.93%

Undervalued

13.70

Trailing

Forward

7.46

EV/EBITDA

Lululemon Athletica Inc. (LULU) has a current EV/EBITDA of 7.46. The 5-year average EV/EBITDA is 19.87. The thresholds are as follows: Strongly Undervalued below 5.06, Undervalued between 5.06 and 12.46, Fairly Valued between 27.27 and 12.46, Overvalued between 27.27 and 34.68, and Strongly Overvalued above 34.68. The current Forward EV/EBITDA of 7.46 falls within the Undervalued range.

10.12

EV/EBIT

Lululemon Athletica Inc. (LULU) has a current EV/EBIT of 10.12. The 5-year average EV/EBIT is 23.46. The thresholds are as follows: Strongly Undervalued below 6.21, Undervalued between 6.21 and 14.84, Fairly Valued between 32.08 and 14.84, Overvalued between 32.08 and 40.71, and Strongly Overvalued above 40.71. The current Forward EV/EBIT of 10.12 falls within the Undervalued range.

167.59

Lululemon Athletica Inc. (LULU) has a current PS of 167.59. The 5-year average PS is 6.06. The thresholds are as follows: Strongly Undervalued below -18.83, Undervalued between -18.83 and -6.39, Fairly Valued between 18.50 and -6.39, Overvalued between 18.50 and 30.94, and Strongly Overvalued above 30.94. The current Forward PS of 167.59 falls within the Strongly Overvalued range.

10.10

P/OCF

Lululemon Athletica Inc. (LULU) has a current P/OCF of 10.10. The 5-year average P/OCF is 28.23. The thresholds are as follows: Strongly Undervalued below 5.03, Undervalued between 5.03 and 16.63, Fairly Valued between 39.83 and 16.63, Overvalued between 39.83 and 51.43, and Strongly Overvalued above 51.43. The current Forward P/OCF of 10.10 falls within the Undervalued range.

14.84

P/FCF

Lululemon Athletica Inc. (LULU) has a current P/FCF of 14.84. The 5-year average P/FCF is 45.24. The thresholds are as follows: Strongly Undervalued below 1.75, Undervalued between 1.75 and 23.50, Fairly Valued between 66.99 and 23.50, Overvalued between 66.99 and 88.74, and Strongly Overvalued above 88.74. The current Forward P/FCF of 14.84 falls within the Undervalued range.

Lululemon Athletica Inc (LULU) has a current Price-to-Book (P/B) ratio of 4.54. Compared to its 3-year average P/B ratio of 11.19 , the current P/B ratio is approximately -59.41% higher. Relative to its 5-year average P/B ratio of 13.62, the current P/B ratio is about -66.64% higher. Lululemon Athletica Inc (LULU) has a Forward Free Cash Flow (FCF) yield of approximately 0.06%. Compared to its 3-year average FCF yield of 3.12%, the current FCF yield is approximately -98.12% lower. Relative to its 5-year average FCF yield of 2.49% , the current FCF yield is about -97.64% lower.

4.54

P/B

Median3y

11.19

Median5y

13.62

0.06

FCF Yield

Median3y

3.12

Median5y

2.49

Competitors Valuation Multiple

The average P/S ratio for LULU's competitors is 112.29, providing a benchmark for relative valuation. Lululemon Athletica Inc Corp (LULU) exhibits a P/S ratio of 167.59, which is 49.24% 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

LULU.O

Lululemon Athletica Inc

Gildan Activewear Inc

Performance Decomposition

Market capitalization of LULU decreased by 47.74% 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.

6.50%

2.37B → 2.53B

Revenue Growth

-11.35%

16.57 → 14.69

Margin Expansion

-42.89%

19.93 → 11.38

P/E Change

-47.74%