lululemon athletica inc., (LULU) Fair Value & Analysis
Consumer Cyclical · US · Market cap $13.2B
lululemon athletica inc.,
LULU · US
Fair value as of: Aug 14, 2026
From 26 valuation models · updated today
Share price +1.9% over the past month.
A solid business, screening 151% undervalued on our models.
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 ($200.04). The market is more pessimistic than our downside scenario.
- The model range is unusually wide ($200.04 to $560.25). 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 Aug 14, 2026.
How to read this chart
60‑month range $105.43 – $511.29 · fair‑value band $200.04 – $560.25 · the $119.56 price screens below the $299.63 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 14, 2026.
Analysis
lululemon athletica inc., (LULU) currently trades at $119.56, while our model-based Fair Value estimate is $299.63, implying the stock looks roughly 150.6% undervalued today. The Quality Score stands at 70/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.
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 Aug 14, 2026
Our scenario range runs from $200.04 (bear case) to $560.25 (bull case); at $119.56, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 55% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -50% fair-value upside, at 151%, LULU screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 26 models by family
Widest divergence: Growth Earnings ($430.96) versus Dividend Discount ($3.55). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 14, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 67 · Market factors (momentum, volatility) 24
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.
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.
of which total revenue +19.7 pp · buybacks/dilution +1.8 pp
Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).
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Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Lululemon (LULU) Sees a More Significant Dip Than Broader Market: Some Facts to Know
- Nike, Lululemon, Deckers, and On Holding Have All Plunged. What's the Best Buy of the Four?
- JB Global Capital: Lessons from Lululemon’s (LULU) Investment Case
Peer Group
Apparel Retail · 109 stocks
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 Multiples vs Apparel Retail median · lower = cheaper
Snowflake
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.
Insider activity: 78/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Apparel Retail stocks, each showing price versus our Fair Value estimate (as of Aug 14, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Industria de Diseño Textil, S.A ITX | 246.10 PLN | 189.40 PLN | -23% |
| The TJX Companies, Inc TJX | $152.61 | $84.95 | -44% |
| Fast Retailing Co 6288 | HK$37.80 | HK$15.21 | -60% |
| Ross Stores, Inc ROST | $248.25 | $118.41 | -52% |
| Burlington Stores, Inc BURL | $353.63 | $143.65 | -59% |
| Trent Limited TRENT | ₹2,990 | ₹709.49 | -76% |
| Aritzia Inc ATZ | C$140.07 | C$70.30 | -50% |
| The Gap, Inc GAP | $20.96 | $36.44 | +74% |
| Urban Outfitters, Inc URBN | $79.43 | $92.88 | +17% |
| Metro Brands Limited METROBRAND | ₹943.80 | ₹311.41 | -67% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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