Lululemon Athletica Inc. (LULU) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+153.5%

$274.68

vs $108.34 price

Levered DCF

$236.46

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

5.13

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	13.5×	27.97×	39.41×	45.16×	44.38×	73.78×	49.77×	40.4×
P/B	4.29×	11.74×	14.43×	12.27×	15.81×	16.98×	16.46×	13.53×
P/S	1.92×	4.79×	6.35×	4.76×	6.92×	9.87×	8.07×	5.95×
EV / EBITDA	7.79×	16.66×	23.29×	19.1×	26.85×	41.63×	30.23×	22.55×
Gross margin	56.6%	59.2%	58.3%	55.4%	57.7%	56.0%	55.9%	55.2%
Operating margin	19.9%	23.7%	22.2%	16.4%	21.3%	18.6%	22.3%	21.5%
Net margin	14.2%	17.1%	16.1%	10.5%	15.6%	13.4%	16.2%	14.7%
Current ratio	2.26×	2.16×	2.49×	2.12×	1.86×	2.41×	2.91×	2.86×
Debt / equity	0.36×	0.36×	0.33×	0.34×	0.32×	0.31×	0.38×	0×
Interest coverage	0×	0×	0×	0×	0×	0×	0×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	31.8%	42.0%	36.6%	27.1%	35.6%	23.0%	33.1%	33.5%
Return on invested capital	22.7%	29.2%	26.6%	19.7%	26.2%	17.0%	22.9%	30.1%
Return on assets	18.7%	23.9%	21.9%	15.2%	19.7%	14.1%	19.7%	23.2%
Free cash flow yield	4.3%	3.1%	2.7%	0.8%	2.3%	1.3%	1.2%	2.6%
Earnings yield	7.4%	3.6%	2.5%	2.2%	2.3%	1.4%	2.0%	2.5%
Enterprise value	$21.3B	$50.4B	$60.2B	$38.5B	$42.9B	$43.1B	$31.8B	$18.7B
Net debt / EBITDA	-0×	-0.14×	-0.33×	-0.04×	-0.24×	-0.34×	-0.34×	-1.06×
Cash conversion cycle (days)	122	109	100	143	105	96	103	86