We’ve recently updated our valuation analysis.

Lululemon Athletica Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LULU 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/Revenue5.5x
Enterprise Value/EBITDA21.8x
PEG Ratio2.6x

Price to Earnings Ratio vs Peers

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

LULU PE Ratio vs 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.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.3x
VFC V.F
11.9x11.7%US$11.9b
TPR Tapestry
8.1x7.3%US$7.0b
LEVI Levi Strauss
10.4x13.1%US$6.2b
RL Ralph Lauren
10.6x10.7%US$5.9b
LULU Lululemon Athletica
34.7x13.3%US$38.3b

Price-To-Earnings vs Peers: LULU is expensive based on its Price-To-Earnings Ratio (34.7x) compared to the peer average (10.3x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: LULU is expensive based on its Price-To-Earnings Ratio (34.7x) compared to the US Luxury industry average (9.4x)


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 Ratio34.7x
Fair PE Ratio19.7x

Price-To-Earnings vs Fair Ratio: LULU is expensive based on its Price-To-Earnings Ratio (34.7x) compared to the estimated Fair Price-To-Earnings Ratio (19.7x).


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 ($300.22) is trading above our estimate of fair value ($229.88)

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


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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