lululemon athletica inc.
lululemon athletica inc. is principally a designer, distributor, and retailer of technical athletic apparel, footwear, and accessories. Our vision is to create transformative products and experiences that build meaningful connections, unlocking greater possibility and wellbeing for all.
$104.05
+$7.52 (+7.79%)
Live
19.91% operating margin is respectable but not wide. ROIC at 24.50%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 4.9%, steady but not accelerating. Margins contracted 3.8pp, which offsets some of the top-line progress.
Free cash flow declined 42% versus the prior year, cash generation momentum has weakened. ROIC dropped from 30.24% to 24.50%, capital efficiency is deteriorating.
8.5x earnings, 8.1x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$11.09B
▲ +4.9% YoY
Net Income (TTM)
$1.42B
▼ -13.0% YoY
Op. Margin
17.84%
▼ -3.8pp YoY
ROIC
20.63%
▼ -5.7pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$1.35B
▼ -41.8% YoY
Op. Cash Flow (TTM)
$1.98B
▼ -29.5% YoY
Net Debt
$751M
Cash & Equiv.
$1.39B
5Y CAGR: +20.3%
5Y CAGR: +9.9%
Continue Research
SourceComputed from the 10-Q filed 28 Aug 2026, covering the period ending 2 Aug 2026, as reported to the SEC. Data last refreshed 12 Oct 2026. How this is calculated.
Price from market data, live as of 22 Oct 2026. Fiscal year ends Jan. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is lululemon athletica (LULU) overvalued?
At a P/E of 8.5 and a price-to-free-cash-flow of 8.1, lululemon athletica (LULU) trades below a two-stage DCF intrinsic value of about $264.63 per share, so at $104.05 the stock looks undervalued (154.3% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, lululemon athletica scores 95/100 on Intrinsiqq's quality scorecard (a high-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is lululemon athletica's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $264.63 per share for LULU, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $198.47. At today's $104.05, that puts the stock about 154.3% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is lululemon athletica a high-quality business?+
lululemon athletica scores 95 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a high-quality business on these measures. Recent fundamentals include a 17.8% operating margin and a 20.6% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is lululemon athletica a good stock to buy right now?+
That depends on valuation and quality together, not either alone. LULU currently trades below its estimated intrinsic value and scores 95/100 on quality (high-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Apparel & Other Finishd Prods of Fabrics & Similar Matl
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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