LULU Analysis — TradeApes

lululemon athletica inc. (LULU)

Consumer Cyclical Apparel

$100.61 close · Sep 05, 2026

Undervalued (High) Est. $176.13 78 Health · Strong

Below 50 & 200 SMA

52W -53.4% from High

Methodology Breakdown

Mature

Our Estimate

$176.13 High confidence

Equal-weighted blend of 2 independent methods, which span $159.23–$193.04. Current price $120.26 is below our estimate.

Method	Value	Role
DCF (Base Case)	$109.23	IN ESTIMATE
DCF (TTM-anchored)	$209.22	IN ESTIMATE
Peer Multiples	$193.04	IN ESTIMATE
Earnings Power Value	$30.12	CROSS-CHECK
Book Value Anchor	$74.63	CROSS-CHECK
Earnings Anchor	$163.89	CROSS-CHECK
NAV Anchor	$74.63	CROSS-CHECK

In estimate — combined into our number · Cross-check — computed for context, not counted

📈

Multiple compressed z = -1.51

EV/EBITDA (5.6×) is 1.51 std deviations below its 2-year average

Jun 23

Health Score

Out of 100

Strong

Pillar Scores

Financial Strength

Operating Trend

Valuation

Undervalued 92

Capital Allocation

Risk Management

Positives

↑ multiple vs own 5-yr history +4.4

↑ earnings yield (absolute) +2.0

↑ ROIC level + trend +3.3

Concerns

↓ margin expansion -1.5

↓ operating-margin trend + inflection -3.0

↓ Piotroski F (0–9) -0.6

Signal contribution: +44.6 from strengths -5.1 from concerns

Health Score Trend 8 snapshots

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	11.09B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	6.22B
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	1.98B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	1.42B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	1.35B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	2.52B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	$0
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	—

Valuation

Market Cap	11.36B
Enterprise Value	13.50B
EV / Revenue	1.2x
EV / EBITDA	5.4x
P/E (TTM)	8.0x
Forward P/E (extrapolated)	4.9x
PEG	0.1x
P/FCF	8.4x
FCF Yield	11.9%

EV/EBITDA vs history — 0% percentile (historically cheap)

CheapMidExpensive

EV/Sales vs history — 0% percentile (historically cheap)

CheapMidExpensive

P/Book vs history — 0% percentile (historically cheap)

CheapMidExpensive

Relative Valuation

Using relative multiples

EV / Revenue

1.2x

Book Value / Share

$42.43

Price / Book

2.4x

P/E (TTM)

8.0x

Price / Sales

1.0x

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	56.1%
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	22.7%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	12.8%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	12.2%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	52.1%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	36.7%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	6 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	3.95

Community Sentiment

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Quarterly Financials

Metric	Q2 '26	Q1 '26	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '25	Q2 '25	Q1 '25	Q4 '25	Q3 '24
Revenue ?Total quarterly sales from primary business operations.	2.42B	2.47B	3.64B	2.57B	2.53B	2.37B	—	2.40B	2.37B	2.21B	3.21B	2.20B
Gross Profit ?Quarterly revenue minus cost of goods sold.	1.46B	1.34B	2.00B	1.43B	1.48B	1.38B	—	1.40B	1.41B	1.28B	1.90B	1.26B
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	453.7M	276.9M	812.3M	435.9M	523.8M	438.6M	—	490.7M	540.2M	432.6M	913.9M	338.1M
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	329.2M	195.0M	586.9M	306.8M	370.9M	314.6M	—	351.9M	392.9M	321.4M	669.5M	248.7M
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	225.2M	87.1M	959.7M	82.4M	150.8M	-271.2M	—	122.2M	298.1M	-3.2M	1.18B	227.0M

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

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Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.