Lululemon Athletica Inc.

NasdaqGS:LULU Stock Report

Market Cap: US$39.3b

Lululemon Athletica Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 LULU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LULU ($309.53) is trading below our estimate of fair value ($317.07)

Significantly Below Fair Value: LULU is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LULU. This is calculated by dividing LULU's market cap by their current earnings.
What is LULU's PE Ratio?
PE Ratio23.3x
EarningsUS$1.63b
Market CapUS$39.29b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LULU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.1x
RL Ralph Lauren
18.9x6.9%US$12.9b
TPR Tapestry
16.3x8.0%US$13.3b
LEVI Levi Strauss
41.4x45.4%US$6.6b
PVH PVH
7.6x5.4%US$5.7b
LULU Lululemon Athletica
23.3x7.4%US$39.3b

Price-To-Earnings vs Peers: LULU is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the peer average (21.1x).

Price to Earnings Ratio vs Industry

How does LULU's PE Ratio compare vs other companies in the US Luxury Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
JXJT JX Luxventure
2.9xn/aUS$8.79m
DLAP.Q Delta Apparel
n/an/aUS$7.00
No more companies available in this PE range
LULU 23.3xIndustry Avg. 18.1xNo. of Companies5PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LULU is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the US Luxury industry average (18.1x).

Price to Earnings Ratio vs Fair Ratio

What is LULU'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.

LULU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.3x
Fair PE Ratio20.1x

Price-To-Earnings vs Fair Ratio: LULU is expensive based on its Price-To-Earnings Ratio (23.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.1x).

Analyst Price Targets

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

The above table shows the analyst LULU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$309.53
US$319.62
+3.3%
16.0%US$445.00US$194.00n/a33
Nov ’25US$321.17
US$315.11
-1.9%
15.8%US$445.00US$194.00n/a33
Oct ’25US$266.45
US$315.37
+18.4%
15.5%US$445.00US$194.00n/a34
Sep ’25US$259.47
US$322.35
+24.2%
16.4%US$445.00US$194.00n/a34
Aug ’25US$249.05
US$367.56
+47.6%
18.7%US$525.00US$194.00n/a33
Jul ’25US$302.36
US$397.26
+31.4%
16.1%US$525.00US$240.00n/a33
Jun ’25US$311.99
US$424.41
+36.0%
17.7%US$570.00US$240.00n/a33
May ’25US$354.40
US$460.01
+29.8%
17.1%US$570.00US$240.00n/a34
Apr ’25US$385.20
US$478.98
+24.3%
15.3%US$570.00US$278.00n/a34
Mar ’25US$458.50
US$504.81
+10.1%
15.3%US$610.00US$278.00n/a34
Feb ’25US$461.94
US$502.34
+8.7%
16.0%US$610.00US$250.00n/a34
Jan ’25US$511.29
US$482.39
-5.7%
15.3%US$596.00US$250.00n/a34
Dec ’24US$466.61
US$433.94
-7.0%
14.5%US$540.00US$250.00n/a33
Nov ’24US$395.29
US$428.88
+8.5%
14.7%US$540.00US$250.00US$321.1731
Oct ’24US$385.61
US$427.63
+10.9%
14.5%US$535.00US$250.00US$266.4532
Sep ’24US$404.19
US$424.40
+5.0%
14.5%US$535.00US$250.00US$259.4729
Aug ’24US$381.21
US$413.23
+8.4%
14.3%US$531.00US$250.00US$249.0529
Jul ’24US$378.50
US$410.40
+8.4%
14.0%US$531.00US$250.00US$302.3629
Jun ’24US$328.35
US$396.35
+20.7%
16.5%US$525.00US$225.00US$311.9930
May ’24US$384.99
US$393.64
+2.2%
16.7%US$525.00US$225.00US$354.4029
Apr ’24US$364.19
US$387.05
+6.3%
16.8%US$500.00US$225.00US$385.2029
Mar ’24US$309.49
US$373.52
+20.7%
17.5%US$488.00US$200.00US$458.5030
Feb ’24US$315.71
US$373.29
+18.2%
17.4%US$488.00US$200.00US$461.9430
Jan ’24US$320.38
US$390.99
+22.0%
18.5%US$516.00US$200.00US$511.2930
Dec ’23US$381.82
US$374.07
-2.0%
19.3%US$535.00US$200.00US$466.6129
Nov ’23US$330.36
US$376.57
+14.0%
19.1%US$531.00US$200.00US$395.2928

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y