Lululemon Athletica Inc. (LULU) fair value: what the stock is really worth
As of Nov 4, 2026: fair value (intrinsic value) of Lululemon Athletica Inc. stock $308, price $112, upside +174.6%, quality 68 out of 100. Rating: strongly undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $91.88 – $511.29 · fair‑value band $208.32 – $538.48 · the $112.06 price screens below the $307.70 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China, Hong Kong, Taiwan, Macau, Greece, and internationally.
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It offers pants, shorts, tops, and jackets for athletic activities, such as yoga, running, training, and other activities. The company also provides fitness-inspired accessories.
It sells its products through company-operated stores; seasonal stores, pop-ups, university campus retailers, and yoga and fitness studios; outlets; Like New, a re-commerce program; and its e-commerce website. The company was founded in 1998 and is based in Vancouver, Canada.
Stock analysis
Lululemon Athletica Inc. (LULU) currently trades at $112.06, while our model-based Fair Value estimate is $307.70, implying the stock looks roughly 64% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $442.57 per share, and 23 of the 24 models we run sit above the $112.06 price.
Bear case: the Economic Profit group reads lowest at $148.46, and 1 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $208.32 (bear) to $538.48 (bull), the price of $112.06 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 68/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Lululemon Athletica Inc. reported revenue of $11.1B in FY2026 versus $6.3B in FY2022, a compound +15.4%/yr. Reported net income was $1.6B in FY2026, compounding +12.8%/yr from FY2022.
Key figures
Market cap $13.3B Large · P/E ratio 8.2 · P/S ratio 1.20 · EPS (TTM) $11.74 · Net margin 12.8% · Return on equity 30.9% · Return on assets (EBIT) 28.0% · Operating margin 13.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 78 out of 100 (medium confidence).
What moves the price
The share trades about 48% below its 52-week high and 22% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −19% fair-value upside, at 175%, LULU screens cheaper than that median.
Fair Value models
Bear$208.32Fair Value $307.70Bull$538.48
Price $112.06 · Upside +174.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 9 months old). Earnings retained since then ($8.97 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
SaleMeghan FrankChief Financial Officer2,658 shares at $211.37$561,821Dec 30, 2025
SaleCeleste BurgoynePres Americas & Global Guest13,511 shares at $204.00$2.8MDec 16, 2025
Plus 15 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+4.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+20.3%
Start year 2021 (pandemic). Over 10 years: +18.3% a year
Revenue growth 22 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+33.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+23.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+23.3%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.24.1% vs 21.5%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.19% → 20%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−0.6%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−1.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −2.9% a year for the price and −3.9% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: The business draws moderate strength from brand pricing power and a clean balance sheet, yet its main weakness lies in limited signals on human capital innovation and insider activity.
Main risk: Rivals such as CRZ Yoga on Amazon, Athleta, Vuori, Alo Yoga and Fabletics could draw customers away from Lululemon's core leggings and athleisure with similar quality at lower prices or recurring discounts.
Bull case: The refreshed leadership could accelerate product innovation and differentiation to retain customers despite pressure from lower-priced alternatives.
Bear case: If cheaper rivals and regulatory pressures intensify, Lululemon's brand strength and margins on signature products could erode further as shoppers shift permanently to more affordable options.
Lululemon has cut its full-year revenue guidance multiple times after comparable sales in the Americas fell sharply and sales of its signature leggings dropped 20 percent in the latest quarter. The new CEO is rebuilding the product leadership team while the company scales back planned store openings. Our models see it as undervalued, yet will the overhaul reverse the core weakness or will consumer shifts keep weighing on the business?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Apparel Retail · 103 stocks
Beats the industry median on 9/13 measures
Overall it ranks above its industry peers.
Valuation
Quality Score68 · Top 25%
Fair Value upside+174.6% · Top 25%
Profitability
Return on equity (12 months)30.9% · Top 25%
Return on assets18.7% · Top 25%
Net margin (12 months)12.8% · Top 25%
Operating margin (12 months)13.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)−4.3% · Bottom 25%
Valuation Multiplesvs Apparel Retail median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Lululemon Athletica Inc. Fair Value". https://www.fairvalue-calculator.com/stock/LULU
Frequently asked questions
Is Lululemon Athletica Inc. (LULU) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $307.70 versus a price of $112.06, about +175% upside (undervalued).
What is the fair value of LULU?
Our model-based fair value for Lululemon Athletica Inc. is $307.70 (as of Nov 6, 2026), built from audited fundamentals. The current price: $112.06.
What is the quality score of LULU?
Lululemon Athletica Inc. has a Quality Score of 68/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Lululemon Athletica Inc. (LULU)?
Our model-based price target is the fair value of $307.70 (as of Nov 6, 2026) from 24 valuation models. Cautious scenario $208.32, optimistic scenario $538.48. It is a calculation from audited fundamentals, not an analyst target.
What is the Lululemon Athletica Inc. stock forecast for 2026?
Our models put fair value at $307.70, about +175% upside versus a price of $112.06 (undervalued). Cautious scenario $208.32, optimistic scenario $538.48. The calculation is refreshed regularly with new filings.
What is the revenue of Lululemon Athletica Inc. (LULU)?
Lululemon Athletica Inc. reported trailing-twelve-month revenue of about $11.1B (latest available figure, as of Nov 6, 2026).
What growth is priced into Lululemon Athletica Inc. (LULU)?
For today's price to be fair in a discounted-cash-flow model, Lululemon Athletica Inc. would have to grow free cash flow by -0.6 % per year for five years (discount rate 9.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +20.3 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of LULU use?
Our models discount Lululemon Athletica Inc. at 9.1 %: a base by market capitalisation (large), damped by beta 0.92, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Lululemon Athletica Inc. that is -0.6 % per year a year over ten years, using the same discount rate (9.1 %) and the same formula as our fair value.
How much growth has Lululemon Athletica Inc. (LULU) delivered so far?
Over the past 5 years revenue at Lululemon Athletica Inc. grew +20.3 % a year. The price currently implies -0.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Lululemon Athletica Inc. (LULU) growing?
The median revenue growth in the sector is +4.6 % a year. That is the yardstick for the growth priced into Lululemon Athletica Inc. (-0.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Lululemon Athletica Inc. (LULU)?
The free-cash-flow yield on the price is 6.91 %: that much free cash flow Lululemon Athletica Inc. produces per unit of market value. When it exceeds the discount rate of our models (9.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Lululemon Athletica Inc. (LULU)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Lululemon Athletica Inc. it is $307.70 per share (as of Nov 6, 2026), against a price of $112.06. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Lululemon Athletica Inc. stock overvalued or undervalued in 2026?
As of Nov 6, 2026, LULU trades below its calculated fair value: price $112.06, fair value $307.70, a gap of about +175% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of LULU?
No. The price is what the market pays today ($112.06); the fair value is what the company's own numbers justify ($307.70). For Lululemon Athletica Inc. the two are $195.64 per share apart. That gap is exactly why we show both numbers side by side.
How much is Lululemon Athletica Inc. worth?
The market values Lululemon Athletica Inc. at about $13.3B (market capitalisation, as of Nov 6, 2026). Per share that is $112.06; our models calculate a fair value of $307.70 per share.
What do the bullish and bearish scenarios say about LULU?
Our models span a range for Lululemon Athletica Inc.: cautious scenario $208.32, base $307.70, optimistic $538.48 per share (as of Nov 6, 2026, price $112.06). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of LULU?
Lululemon Athletica Inc. trades at a price-to-earnings ratio of 8.2 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $307.70 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, 5 of the years ex one-offs: 36.3. Other multiples: PEG 1.1, P/B 2.7, P/S 1.2, EV/EBITDA 4.8.
What is the PEG ratio of LULU?
The PEG ratio of Lululemon Athletica Inc. is 1.13 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Lululemon Athletica Inc. (LULU)?
Balance-sheet figures for Lululemon Athletica Inc. (as of Nov 6, 2026): return on equity 30.9%. They feed the Quality Score of 68/100, which measures business quality independently of the share price.
How far is LULU from its 52-week high?
Lululemon Athletica Inc. trades at $112.06, about 48% below its 52-week high of $215.88 and 22% above the low of $91.88 (as of Nov 4, 2026). Distance from the high says nothing about value: that is what the fair value of $307.70 is for.
Which stocks are comparable to Lululemon Athletica Inc.?
From the same area (Consumer Cyclical) we also value Industria de Diseño Textil, S.A, The TJX Companies, Inc, Fast Retailing Co, Ross Stores, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Lululemon Athletica Inc. stock attractive at the current price?
The data as of Nov 6, 2026: price $112.06, calculated fair value $307.70 (+175%), Quality Score 68/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of LULU calculated?
We run Lululemon Athletica Inc. through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $307.70, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Lululemon Athletica Inc. currently trades 64% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Lululemon Athletica Inc. (LULU)?
The closing price on Nov 4, 2026 was $112.06. Our model-based fair value is $307.70, about +175% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Lululemon Athletica Inc. right now?
The price is below even our cautious bear case ($208.32). The market is more pessimistic than our downside scenario. Solid quality (68/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($208.32 to $538.48) leaves room in how you read the outcome.
Where does the earnings growth of Lululemon Athletica Inc. (LULU) come from?
Earnings per share at Lululemon Athletica Inc. grew +24.1 % a year from 2015 to 2026. Broken into its drivers: revenue per share +21.5 %, EBIT margin +1.7 %, tax rate +0.3 %, residual (interest, one-offs) +0.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Lululemon Athletica Inc.
How large is the market capitalisation of Lululemon Athletica Inc. (LULU)?
The market capitalisation of Lululemon Athletica Inc. is $13.3B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Lululemon Athletica Inc. (LULU)?
The price-to-sales ratio of Lululemon Athletica Inc. is 1.20 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Lululemon Athletica Inc. (LULU)?
Earnings per share at Lululemon Athletica Inc. are $11.74 (price ÷ EPS = P/E 8.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Lululemon Athletica Inc. (LULU)?
The net margin of Lululemon Athletica Inc. is 12.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Lululemon Athletica Inc. (LULU)?
The return on equity (ROE) of Lululemon Athletica Inc. is 30.9% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Lululemon Athletica Inc. (LULU)?
On an EBIT basis the return on assets of Lululemon Athletica Inc. is 28.0% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Lululemon Athletica Inc. (LULU)?
The operating margin of Lululemon Athletica Inc. is 13.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Lululemon Athletica Inc. (LULU)?
Revenue at Lululemon Athletica Inc. is growing −4.3% versus a year earlier (3y avg +11.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Lululemon Athletica Inc. (LULU)?
Earnings per share at Lululemon Athletica Inc. are growing −5.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Lululemon Athletica Inc. (LULU) hold?
Lululemon Athletica Inc. holds more cash than debt, $8.8M net (fiscal year 2026). The company holds more cash than debt, a safety cushion.
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Nov 6, 2026