Lululemon Athletica Inc. (LULU) fair value: what the stock is really worth
We calculate from audited financials what Lululemon Athletica Inc. is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.
Compare price with fair valuebelow fair value = cheap, above = expensive
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Consumer Cyclical · US · Market cap $13.2B · ISIN US5500211090
At a glance
LALululemon Athletica Inc.LULU · US
Price$96.88
Fair Value$290.64
Upside+200.0%
Quality70/100
A solid business, trading 67% below our fair value of $290.64.
As of Sep 7, 2026, the fair value of Lululemon Athletica Inc. is $290.64 per share against a price of $96.88, so the fair value sits 200% above the price. A model estimate from reported figures, not an analyst target.
✓Healthy Growth (revenue 5y +20.3 %/yr)
✓Solidly profitable · 13.0% net margin
✓generates free cash flow
✓Ranks above peers (10/14)
✓Wide moat 77/100
!The models disagree: range $194.04 to $543.44
!Weak on future: 22 out of 100
!Weak on dividend: 3 out of 100
Evidence: HighRange $194.04 to $543.44
Fair value as of: Sep 7, 2026
From 26 valuation models · updated 4 days ago
Fair value updated Sep 7, 2026, revised from $299.63 to $290.64 (−3.0%) since Aug 30, 2026. Share price −22.9% over the past month.
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What matters now
The rarer combination: high quality (70/100) AND below fair value. That earns a closer look rather than a quick verdict.
The price is below even our cautious bear case ($194.04). The market is more pessimistic than our downside scenario.
The model range is unusually wide ($194.04 to $543.44). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 7, 2026.
How to read this chart
60‑month range $96.88 – $511.29 · fair‑value band $194.04 – $543.44 · the $96.88 price screens below the $290.64 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 7, 2026.
Lululemon Athletica Inc. (LULU) currently trades at $96.88, while our model-based Fair Value estimate is $290.64, implying the stock looks roughly 66.7% undervalued today. The Quality Score stands at 70/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of $430.96 per share, and 23 of the 26 models we run sit above the $96.88 price. Bear case: the Asset-Based group reads lowest at $30.66, and 3 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Lululemon Athletica Inc. generated revenue of $11.1B at a net margin of 14.2%. Revenue grew 0.8% year over year. It earns a return on equity of 34.0%. The balance sheet holds a net cash position of $8.8M. Fundamentals as of Sep 7, 2026
Scenario range: $194.04 (bear) to $543.44 (bull), the price of $96.88 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 64% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −34% fair-value upside, at 200%, LULU screens cheaper than that median.
Fair Value models
Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then ($7.36 per share) are deliberately not added.
Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →
ModelBear ⓘ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.Evidence
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Key figures & financial health
P/E ratio9.6as of Jul 18, 2026
P/S ratio1.37P/E × margin
EPS (TTM)$12.10price ÷ EPS = P/E 9.6
Dividend yield0.2%payout 1.3%
Net margin14.2%FY2026
Return on equity32.0%TTM
More key figures
Profitability
Return on assets (EBIT)28.0%avg 5y
Operating margin11.2%TTM
Growth
Revenue (TTM)$11.2BTTM
Revenue growth (YoY)+4.3%3y avg +11.0%
EPS growth (YoY)−35.0%
Balance sheet & cash flow
Free cash flow$922MFY2026
Net cash$8.8MFY2026
Figures from reported company fundamentals · as of Sep 7, 2026. TTM = trailing twelve months.
Quality Score breakdown
Overall quality70/100
Of which business quality 67
· Market factors (momentum, volatility) 21
Profitability92
Margins and returns on capital today
Quality Growth17
Are margins and returns improving?
Cashflow43
Earnings quality: real cash, not paper profit
Fin. Strength92
Balance sheet, leverage, solvency risk
Investment41
Disciplined investing over empire-building
Low Volatility51
Calm price path (market factor)
Momentum13
Price trend over the last 3–12 months (market factor)
52W Momentum0
Distance to the 52-week high (market factor)
Net Issuance100
Buybacks instead of dilution
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
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.
Full company description
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. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2022 – FY2026 · reported fiscal years
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.
Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
$11.1B
Latest YoY
+4.9%
Avg. revenue growth/yr (3Y) ⓘ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.
+11.0%
Avg. revenue growth/yr (5Y) ⓘ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.
+20.3%
Avg. revenue growth/yr (22Y) ⓘ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.
+33.9%
Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years, adjusted) plus dividend yield: value created per share and year.
+23.5%
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+23.3%
Dividend yield0.2%
Trend ⓘ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.5Y 24.1% vs 10Y 21.5%, steady
Operating margin (EBIT) ⓘ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.18.6% (2021) → 19.9% (2026) · rising
Revenue+15.4%/yr
FY22$6.3B
FY23$8.1B
FY24$9.6B
FY25$10.6B
FY26$11.1B
Net income+12.8%/yr
FY22$975M
FY23$855M
FY24$1.6B
FY25$1.8B
FY26$1.6B
Character of growth · EPS growth decomposed (2015-2026)+24.1 % p.a.
Revenue per share+21.5 %
of which total revenue +19.7 % · buybacks/dilution +1.5 %
EBIT margin+1.7 %
Tax rate+0.3 %
Residual (interest, one-offs)+0.2 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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.
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.
Valuation
Quality Score70 · Top 25%
Fair Value upside+198% · Top 25%
Profitability
Return on equity (TTM)32% · Top 25%
Return on assets16% · Top 25%
Net margin (TTM)13% · Top 25%
Operating margin (TTM)11% · Top 25%
Growth and dividend
Revenue growth4% · Above median
Dividend yield (TTM)0.2% · Bottom 25%
Valuation Multiples vs Apparel Retail median · lower = cheaper
P/E (TTM)9.6× · Cheapest 25%
P/B2.66× · Pricier than median
P/S (TTM)1.18× · Pricier than median
P/FCF14.3× · Pricier than median
EV/EBITDA4.4× · Cheapest 25%
PEG0.91× · Cheaper than median
What the price implies (reverse DCF)
The inverse question: what free-cash-flow growth must Lululemon Athletica Inc. deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.
Implied FCF growth, 10 years-2.5 % per year
Achieved revenue growth, 5 years+20.3 % p.a.
Sector median revenue growth+2.7 %
FCF yield on price7.99 %
Discount rate (WACC) in the models8.9 %
The price demands less growth than the company recently delivered: even a weaker business would justify the price. Ranking of the largest stocks →
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
This stockSector peers
VALUE100· sector 31
FUTURE22· sector 17
PAST100· sector 24
HEALTH0· sector 100
DIVIDEND3· sector 58
Insider activity: 78/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
None of the checked exposures detected
Similar stocks
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Is Lululemon Athletica Inc. (LULU) overvalued or undervalued?
As of Sep 7, 2026, our model estimates a fair value of $290.64 versus a price of $96.88, about +200% upside (undervalued).
What is the fair value of LULU?
Our model-based fair value for Lululemon Athletica Inc. is $290.64 (as of Sep 7, 2026), built from audited fundamentals. The current price: $96.88.
What is the quality score of LULU?
Lululemon Athletica Inc. has a Quality Score of 70/100. 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 $290.64 (as of Sep 7, 2026) from 26 valuation models. Cautious scenario $194.04, optimistic scenario $543.44. 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 $290.64, about +200% upside versus a price of $96.88 (undervalued). Cautious scenario $194.04, optimistic scenario $543.44. 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 Sep 7, 2026).
What is the net profit margin of LULU?
The net profit margin of Lululemon Athletica Inc. is about 14.2%, meaning it keeps roughly 14.2% of revenue as net income. Based on the latest reported figures.
Does Lululemon Athletica Inc. pay a dividend?
Lululemon Athletica Inc. currently shows a dividend yield of about 0.16% relative to its recent price (as of Sep 7, 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 -2.5 % per year for ten years (discount rate 8.9 %, then 2 % perpetual growth). Over the last 5 years revenue grew +20.3 % per year. As of Sep 7, 2026.
What discount rate (WACC) does the fair value of LULU use?
Our models discount Lululemon Athletica Inc. at 8.9 %: a base by market capitalisation (large), damped by beta 0.88, country premium for USA. The same rate applies in all 26 models.
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 $290.64 per share (as of Sep 7, 2026), against a price of $96.88. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Lululemon Athletica Inc. stock overvalued or undervalued in 2026?
As of Sep 7, 2026, LULU trades below its calculated fair value: price $96.88, fair value $290.64, a gap of about +200% (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 ($96.88); the fair value is what the company's own numbers justify ($290.64). For Lululemon Athletica Inc. the two are $193.76 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 $13.2B (market capitalisation, as of Sep 7, 2026). Per share that is $96.88; our models calculate a fair value of $290.64 per share.
What do the bullish and bearish scenarios say about LULU?
Our models span a range for Lululemon Athletica Inc.: cautious scenario $194.04, base $290.64, optimistic $543.44 per share (as of Sep 7, 2026, price $96.88). 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 9.6 (as of Sep 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $290.64 is built from several models across several years. Other multiples: PEG 0.9, P/B 2.7, P/S 1.2, EV/EBITDA 4.4.
What is the PEG ratio of LULU?
The PEG ratio of Lululemon Athletica Inc. is 0.91 (P/E divided by earnings growth, as of Sep 7, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Lululemon Athletica Inc. (LULU)?
Balance-sheet figures for Lululemon Athletica Inc. (as of Sep 7, 2026): return on equity 32.0%. They feed the Quality Score of 70/100, which measures business quality independently of the share price.
How far is LULU from its 52-week high?
Lululemon Athletica Inc. trades at $96.88, about 64% below its 52-week high of $266.95 (as of Sep 7, 2026). Distance from the high says nothing about value: that is what the fair value of $290.64 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 Sep 7, 2026: price $96.88, calculated fair value $290.64 (+200%), Quality Score 70/100, from 26 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 26 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 $290.64, 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 32.6 % above its aggregate fair value. Lululemon Athletica Inc. currently trades 200 % 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 <a href="/is-it-worth-investing-now/">is it worth investing now</a>.
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Lululemon Athletica Inc.
LULU · US