Lululemon Athletica Valuation

Q: What is the Fair Price of L1UL34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

L1UL34 (R$462.01) is trading above our estimate of [[fair value]] (R$314.44)

Is L1UL34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of L1UL34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: L1UL34 (R$462.01) is trading above our estimate of fair value (R$314.44)

Significantly Below Fair Value: L1UL34 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for L1UL34?

Key metric: As L1UL34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for L1UL34. This is calculated by dividing L1UL34's market cap by their current earnings.
What is L1UL34's PE Ratio?
PE Ratio	24x
Earnings	US$1.63b
Market Cap	US$40.11b

L1UL34 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4x
Enterprise Value/EBITDA	14.8x
PEG Ratio	3.3x

Price to Earnings Ratio vs Peers

How does L1UL34's PE Ratio compare to its peers?

The above table shows the PE ratio for L1UL34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	13.5x
AZZA3 Azzas 2154	16.5x	24.7%	R$8.6b
VIVA3 Vivara Participações	11.7x	12.6%	R$5.7b
GUAR3 Guararapes Confecções	19.8x	40.7%	R$4.1b
CAMB3 Cambuci	6.2x	n/a	R$456.4m
L1UL34 Lululemon Athletica	24x	7.2%	R$40.1b

Price-To-Earnings vs Peers: L1UL34 is expensive based on its Price-To-Earnings Ratio (24x) compared to the peer average (13.5x).

Price to Earnings Ratio vs Industry

How does L1UL34's PE Ratio compare vs other companies in the Global Luxury Industry?

50 Companies	Price / Earnings	Estimated Growth	Market Cap

50 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: L1UL34 is expensive based on its Price-To-Earnings Ratio (24x) compared to the Global Luxury industry average (19x).

Price to Earnings Ratio vs Fair Ratio

What is L1UL34's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

L1UL34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24x
Fair PE Ratio	14.5x

Price-To-Earnings vs Fair Ratio: L1UL34 is expensive based on its Price-To-Earnings Ratio (24x) compared to the estimated Fair Price-To-Earnings Ratio (14.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.