What Is LULU Fair Value?
Lululemon Athletica Inc. (LULU) fair value estimate using multiple valuation models, updated daily.
As of September 15, 2026, Lululemon Athletica Inc. (LULU) has a composite fair value estimate of $131.67 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $98.37, suggesting the stock is undervalued by 33.9%.
Data as of September 15, 2026 (today)
Composite Fair Value
Undervalued3 of 4 models$131.67
vs. current price of $98.37(+33.9%)
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 →
$154.81
+57.4%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 →
$96.41
-2.0%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.
$96.29
-2.1%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 $98.37 is 57.4% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $1.21B | $1.12B |
| Year 2 | $1.23B | $1.05B |
| Year 3 | $1.26B | $988.2M |
| Year 4 | $1.28B | $930.3M |
| Year 5 | $1.31B | $875.9M |
| Year 6 | $1.33B | $824.6M |
| Year 7 | $1.36B | $776.3M |
| Year 8 | $1.39B | $730.8M |
| Year 9 | $1.42B | $688.0M |
| Year 10 | $1.44B | $647.7M |
| Terminal Value | $25.31B | $11.36B |
What Are LULU's Key Financial Metrics?
Earnings & Growth
Current Price
$98.37
EPS (TTM)
$12.15
Forward P/E
11.2
Profit Margin
12.8%
Cash & Balance Sheet
Free Cash Flow
1.1B
EBITDA
2.4B
Book Value
$42.90
Total Debt
2.1B
What Do Analysts Say About LULU?
Low
$44.00
Average
$105.65
High
$255.00
Upside
+7.4%
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 $131.67. The stock is currently trading at $98.37, which makes it undervalued 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 undervalued. The current price of $98.37 is 33.9% below our estimated fair value of $131.67.
What do Wall Street analysts say about LULU?
27 analysts cover Lululemon Athletica Inc. with a consensus rating of "Hold." The average price target is $105.65, ranging from $44.00 to $255.00. This implies 7.4% upside from the current price.