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 16.86 is considered Undervalued compared with the five-year average of 31.23. The fair price of Lululemon Athletica Inc (LULU) is between 245.81 to 471.01 according to relative valuation methord. Compared to the current price of 204.97 USD , Lululemon Athletica Inc is Undervalued By 16.62%.

Relative Value

Fair Zone

245.81-471.01

Current Price：204.97

16.62%

Undervalued

16.86

10.01

EV/EBITDA

Lululemon Athletica Inc. (LULU) has a current EV/EBITDA of 10.01. The 5-year average EV/EBITDA is 19.16. The thresholds are as follows: Strongly Undervalued below 4.57, Undervalued between 4.57 and 11.86, Fairly Valued between 26.45 and 11.86, Overvalued between 26.45 and 33.74, and Strongly Overvalued above 33.74. The current Forward EV/EBITDA of 10.01 falls within the Undervalued range.

12.54

EV/EBIT

Lululemon Athletica Inc. (LULU) has a current EV/EBIT of 12.54. The 5-year average EV/EBIT is 22.62. The thresholds are as follows: Strongly Undervalued below 5.84, Undervalued between 5.84 and 14.23, Fairly Valued between 31.01 and 14.23, Overvalued between 31.01 and 39.41, and Strongly Overvalued above 39.41. The current Forward EV/EBIT of 12.54 falls within the Undervalued range.

2.12

Lululemon Athletica Inc. (LULU) has a current PS of 2.12. The 5-year average PS is 4.93. The thresholds are as follows: Strongly Undervalued below 1.34, Undervalued between 1.34 and 3.13, Fairly Valued between 6.72 and 3.13, Overvalued between 6.72 and 8.51, and Strongly Overvalued above 8.51. The current Forward PS of 2.12 falls within the Undervalued range.

11.88

P/OCF

Lululemon Athletica Inc. (LULU) has a current P/OCF of 11.88. The 5-year average P/OCF is 27.20. The thresholds are as follows: Strongly Undervalued below 4.00, Undervalued between 4.00 and 15.60, Fairly Valued between 38.80 and 15.60, Overvalued between 38.80 and 50.40, and Strongly Overvalued above 50.40. The current Forward P/OCF of 11.88 falls within the Undervalued range.

18.30

P/FCF

Lululemon Athletica Inc. (LULU) has a current P/FCF of 18.30. The 5-year average P/FCF is 43.73. The thresholds are as follows: Strongly Undervalued below -0.21, Undervalued between -0.21 and 21.76, Fairly Valued between 65.69 and 21.76, Overvalued between 65.69 and 87.66, and Strongly Overvalued above 87.66. The current Forward P/FCF of 18.30 falls within the Undervalued range.

Lululemon Athletica Inc (LULU) has a current Price-to-Book (P/B) ratio of 5.37. Compared to its 3-year average P/B ratio of 10.83 , the current P/B ratio is approximately -50.40% higher. Relative to its 5-year average P/B ratio of 13.27, the current P/B ratio is about -59.54% higher. Lululemon Athletica Inc (LULU) has a Forward Free Cash Flow (FCF) yield of approximately 4.69%. Compared to its 3-year average FCF yield of 3.32%, the current FCF yield is approximately 41.25% lower. Relative to its 5-year average FCF yield of 2.58% , the current FCF yield is about 81.65% lower.

5.37

P/B

Median3y

10.83

Median5y

13.27

4.69

FCF Yield

Median3y

3.32

Median5y

2.58

Competitors Valuation Multiple

The average P/S ratio for LULU's competitors is 2.37, providing a benchmark for relative valuation. Lululemon Athletica Inc Corp (LULU) exhibits a P/S ratio of 2.12, which is -10.29% 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 46.40% 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

-34.93%

21.76 → 14.16

P/E Change

-46.40%

382.41 → 204.97

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 245.81 to 471.01 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 Dec 15 2025?

As of Dec 15 2025, Lululemon Athletica Inc (LULU) has a P/B ratio of 5.37. This indicates that the market values LULU at 5.37 times its book value.

What is the current FCF Yield for Lululemon Athletica Inc (LULU) as of Dec 15 2025?

As of Dec 15 2025, Lululemon Athletica Inc (LULU) has a FCF Yield of 4.69%. This means that for every dollar of Lululemon Athletica Inc’s market capitalization, the company generates 4.69 cents in free cash flow.

What is the current Forward P/E ratio for Lululemon Athletica Inc (LULU) as of Dec 15 2025?

As of Dec 15 2025, Lululemon Athletica Inc (LULU) has a Forward P/E ratio of 16.86. This means the market is willing to pay $16.86 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 Dec 15 2025?

As of Dec 15 2025, Lululemon Athletica Inc (LULU) has a Forward P/S ratio of 2.12. This means the market is valuing LULU at $2.12 for every dollar of expected revenue over the next 12 months.

LULU Valuation