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Lululemon Athletica Inc. (LULU)
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Lululemon Athletica Inc. (LULU) DCF Valuation

Price is BELOW the estimated range
$175.14
$322.87
Estimated fair value
$120.78
Today's price

Two independent models estimate Lululemon Athletica Inc.'s fair value between $175.14 (conservative case) and $322.87 (analyst consensus).

What would today's price require?

Growth the price assumes-0.7%/yr
Actual growth, last 5 years+7.4%/yr

$120.78 is justified only if free cash flow grows about -0.7% a year for the next decade — slower than the company has actually grown.

Current Price

$120.78

Fair-Value Range

$175.14 – $322.87

Market-Implied Growth

-0.7%/yr

vs +7.4% 5Y actual

LULU DCF Fair Value Calculator

Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.

5%/yr
Historical FCF CAGR: 3Y 29.3% · 5Y 7.4% · 10Y 22.0%
10%
2.5%
10yr

Base inputs: FCF $1.1B · 0.11B shares · net cash $1.5B

Estimated Fair Value

$175.14

+45.0% vs $120.78

Current price$120.78
Analyst DCF (FMP)$322.87

Sensitivity — fair value by discount rate × terminal growth

How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $120.78; red = below. Your current case is outlined.

WACC ↓ / Terminal →1.50%2.00%2.50%3.00%3.50%
8.0%$214$225$237$252$269
9.0%$186$193$201$211$222
10.0%$164$169$175$182$189
11.0%$147$151$155$160$165
12.0%$134$137$140$143$147

About Lululemon Athletica Inc.

Lululemon Athletica Inc., alongside its subsidiaries, specializes in the design, global distribution, and retail of athletic apparel and accessories for both women and men. Its business operations are structured into two main divisions: company-owned retail establishments and direct-to-consumer sales. The firm's offerings encompass a range of clothing such as pants, shorts, tops, and jackets, all crafted for promoting a healthy lifestyle and facilitating athletic endeavors. These activities span yoga, running, training, and other physically demanding pursuits. Beyond apparel, Lululemon also supplies fitness-related accessories and a selection of footwear. Customers can acquire Lululemon products through numerous channels. These include a global network of corporate-managed stores, outlet locations, and seasonal warehouse sales. The company also sells through an interactive digital workout platform and via wholesale partnerships with entities like yoga studios, health clubs, and fitness centers. Further sales occur through temporary pop-up shops, as well as various licensing and supply agreements. A significant portion of sales is conducted directly with consumers through dedicated mobile applications and its primary e-commerce website, lululemon.com. By January 30, 2022, Lululemon boasted 574 stores operating under its brand name across numerous international markets. These markets span the United States, Canada, the People's Republic of China, Australia, the United Kingdom, Japan, New Zealand, Germany, South Korea, Singapore, France, Malaysia, Sweden, Ireland, the Netherlands, Norway, and Switzerland. Founded in 1998, Lululemon Athletica Inc. maintains its corporate base in Vancouver, Canada.

Vancouver, BC
39,000 employees
Consumer Cyclical / Apparel - Retail
Sector
Consumer Cyclical
Industry
Apparel - Retail
CEO
Meghan C. Frank