---
title: Lululemon (LULU) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/lulu
ticker: LULU
as_of: 2026-10-17
sector: Consumer Cyclical
industry: Apparel - Retail
---
# Lululemon (LULU)

Lululemon (LULU) closed at $97.10 on Oct 16, 2026, undervalued by 53% vs its model value of $205.68 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $97.10 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $205.68 |
| Price vs model | undervalued by 53% vs model |
| Range of that model | $139.55 – $434.87 |
| Market value | $11.2B |
| P/E (fiscal 2026) | 7.3 |
| Net margin (fiscal 2026) | 14.2% |
| Free cash flow (fiscal 2026) | $921.7M |
| Dividend yield (trailing twelve months) | 0.00% |
| Beta | 0.92 |
| Cost of capital (WACC) | 8.41% |
| Business classification | Mature & Stable (Low/slowing growth (~7% recent), Decelerated from ~20% 5y CAGR, Moderate margins (14% net margin), Highly cyclical earnings, Strong FCF yield (8.2%)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Lowest P/E | #5 | 7.3× | https://sweetvaluelab.com/lists/lowest-pe |
| Near 52-week lows | #37 | +5.7% | https://sweetvaluelab.com/lists/near-52-week-lows |
| Worst performing this year | #6 | −53.3% | https://sweetvaluelab.com/lists/worst-performing-this-year |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $205.68 | $139.55 | $434.87 |
| DCF · Perpetuity growth · 10y | cross check | $196.43 | $138.48 | $392.72 |
| DCF · EBITDA exit · 5y | cross check | $257.42 | $177.13 | $352.16 |
| DCF · EBITDA exit · 10y | cross check | $234.25 | $163.47 | $329.16 |
| P/E · peers | cross check | $283.71 | $258.05 | $462.36 |
| P/E · own history | cross check | $366.63 | $174.99 | $551.40 |
| PEG | sanity check | $76.89 | $76.89 | $76.89 |
| EV/EBITDA · peers | cross check | $274.98 | $258.70 | $357.57 |
| EV/Revenue · peers | cross check | $144.49 | $112.52 | $204.22 |
| Earnings power value | cross check | $137.77 | $116.93 | $167.66 |
| Dividend discount | cross check | $0.00 | $0.00 | $0.00 |

## Insider activity (SEC Form 4)

No open-market insider buys or sales filed in the past 90 days.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Oct 9, 2026 | FRANK MEGHAN | Chief Financial Officer | Grant / award | 42,328 | $0 |
| Sep 9, 2026 | O'NEILL HEIDI | CEO | Grant / award | 28,079 | $0 |
| Sep 9, 2026 | O'NEILL HEIDI | CEO | Grant / award | 40,223 | $0 |
| Sep 9, 2026 | O'NEILL HEIDI | CEO | Grant / award | 105,295 | $0 |
| Jun 25, 2026 | Maurer Marc | Director | Grant / award | 1,606 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 7, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1397187/000139718726000131/lulu-20260930.htm |
| Sep 14, 2026 | 8-K | 5.02 Departure/Election of Directors or Officers; 5.03 Amendment to Articles/Bylaws; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1397187/000139718726000129/lulu-20260908.htm |
| Sep 3, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/1397187/000139718726000127/lulu-20260802.htm |
| Sep 3, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/1397187/000139718726000126/lulu-20260903.htm |
| Aug 13, 2026 | 8-K | 8.01 Other Events | https://www.sec.gov/Archives/edgar/data/1397187/000139718726000120/lulu-20260813.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Burry | 2025-09-30 | 100,000 | $17.8M |
| Francois Rochon | 2026-06-30 | 128,803 | $14.7M |
| Bridgewater | 2026-06-30 | 28,890 | $3.3M |
| Tweedy Browne | 2026-06-30 | 17,963 | $2.1M |

5 tracked managers in all.

## About

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 workou…

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Source: https://sweetvaluelab.com/stocks/lulu (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.