What Is LULU Fair Value?
Lululemon Athletica Inc. (LULU) fair value estimate using multiple valuation models, updated daily.
As of August 1, 2026, Lululemon Athletica Inc. (LULU) has a composite fair value estimate of $133.41 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $118.87, suggesting the stock is fair value by 12.2%.
Data as of August 1, 2026 (today)
Composite Fair Value
Fair Value3 of 4 models$133.41
vs. current price of $118.87(+12.2%)
How Is LULU Fair Value Calculated?
Four independent models estimate what LULU is worth. Each uses different inputs and assumptions. The composite blends them by weight.
LULU Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
41% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$146.17
+23.0%Undervalued
Inputs used
DDM (Dividend Discount Model)
0% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
LULU Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
29% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$102.38
-13.9%Fair Value
Inputs used
PEG (Price/Earnings to Growth)
29% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$110.47
-7.1%Fair Value
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $118.87 is 23.0% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.21B | $1.11B |
| Year 2 | $1.23B | $1.05B |
| Year 3 | $1.26B | $982.3M |
| Year 4 | $1.28B | $922.9M |
| Year 5 | $1.31B | $867.1M |
| Year 6 | $1.33B | $814.7M |
| Year 7 | $1.36B | $765.4M |
| Year 8 | $1.39B | $719.1M |
| Year 9 | $1.42B | $675.6M |
| Year 10 | $1.44B | $634.8M |
| Terminal Value | $24.40B | $10.73B |
What Are LULU's Key Financial Metrics?
Earnings & Growth
Current Price
$118.87
EPS (TTM)
$12.35
Forward P/E
10.5
Profit Margin
13.0%
Cash & Balance Sheet
Free Cash Flow
1.1B
EBITDA
2.6B
Book Value
$42.17
Total Debt
2.1B
What Do Analysts Say About LULU?
Low
$88.00
Average
$127.73
High
$280.00
Upside
+7.5%
LULU Fair Value FAQ
What is the fair value of LULU?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), LULU's estimated fair value is $133.41. The stock is currently trading at $118.87, which makes it fair value by our analysis.
How is LULU's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is LULU overvalued or undervalued?
Based on our analysis, LULU is fair value. The current price of $118.87 is 12.2% below our estimated fair value of $133.41.
What do Wall Street analysts say about LULU?
26 analysts cover Lululemon Athletica Inc. with a consensus rating of "Hold." The average price target is $127.73, ranging from $88.00 to $280.00. This implies 7.5% upside from the current price.