What is Lululemon Athletica Inc. (LULU) DCF Fair Value and Intrinsic Value in 2026?

Lululemon Athletica Inc. (LULU) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is Lululemon Athletica Inc.'s historical Return on Invested Capital (ROIC) and Moat Rating?

Lululemon Athletica Inc. operates in the Consumer Cyclical sector (Apparel Retail) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is Lululemon Athletica Inc.'s financial health rating and Piotroski F-Score?

Lululemon Athletica Inc.'s balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor Lululemon Athletica Inc. (LULU) for quarterly SEC filing thesis breaks?

LocalAlpha audits Lululemon Athletica Inc.'s 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksLULU

LULU

lululemon athletica inc.Consumer Cyclical / Apparel RetailINTACT

lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails technical athletic apparel, footwear, and accessories for women and men under the lululemon brand in the United States, Canada, Mexico, China, Hong Kong, Taiwan, Macau, Greece, and internationally. It offers pants, shorts, tops, and jackets for athletic activities, such as yoga, running, training, and other activities. The company also provides fitness-inspired accessories. It sells its products through company-operated stores; seasonal stores, pop-ups, university campus retailers, and yoga and fitness studios; outlets; Like New, a re-commerce program; and its e-commerce website. The company was founded in 1998 and is based in Vancouver, Canada.

Share Price

$98.21

52W: $95.67 - $225.98

DCF Fair Value

$211.11

+53.5% MoS

Thesis Hub

P/E (TTM)

8.1x

ROIC

9.9%

Operating Margin

13.2%

FCF Yield

10.6%

Debt / Equity

0.45x

Piotroski Score

8/9

Altman Z-Score

4.92

Market Cap

$10.9B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$211.11

MOS Buy Target (-25%)

$158.33

Valuation Overlays: DCF Fair Value ($211.11) 25% MOS Buy Target ($158.33) Revised Graham ($204.93) Graham Number ($108.29)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$98.21

DCF Fair Value

$210.78

+53.4% MoS

Starting Free Cash Flow ($M)$1,149M

$100M$1,149M (Reported)$50,000M

Stage 1 Growth (Years 1-5)6.6%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$700M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$9.9B

PV of Terminal Value

$13.1B

Implied Enterprise Value

$23.0B

Implied Equity Value

$22.3B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$1,225	$1,306	$1,392	$1,484	$1,582	$1,653	$1,727	$1,805	$1,886	$1,971
Present Value (PV)	$1,124	$1,099	$1,075	$1,051	$1,028	$986	$945	$906	$868	$833

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number+9.3%

$108.29

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $12.15BVPS: $42.90

Revised Graham Formula+52.1% MoS

$204.93

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings10.5% Yield

$10.30 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $1.1BYield: 10.5%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

-5.0% CAGR (Next 10 Yrs)

At the current price of $98.21, the market is assuming the business will compound Free Cash Flow at -5.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil LULU with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for lululemon athletica inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 13.2% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Track LULU & Set Alerts Browse S&P 500 Coverage

Frequently Asked Questions: lululemon athletica inc. (LULU) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for lululemon athletica inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, lululemon athletica inc. has an estimated DCF intrinsic fair value of $211.11 per share compared to its current market price of $98.21. This represents an estimated 53.5% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $108.29.