Lululemon Athletica Inc.Opportunity Rank #15(LULU) Intrinsic Value & DCF Analysis (2026)
Current Price
$164.38
Last updated: Mar 24, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
The intrinsic value of Lululemon Athletica Inc. (LULU) is estimated at $421.78 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $164.38, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 7.61% long-term growth rate and a 9.00% discount rate (calculated: 8.90%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of Lululemon Athletica Inc. (LULU) is estimated at $421.78 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $164.38, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 7.61% long-term growth rate and a 9.00% discount rate (calculated: 8.90%), reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.
Fundamental Details
Narrative Details
Investment Coach
- Monitor whether valuation discount remains above 10%.
- Confirm ROIC stays above cost of capital over coming quarters.
- Follow narrative trend for meaningful shifts in the score direction.
Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates Lululemon Athletica Inc.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
Lululemon Athletica Inc.Consumer Cyclical
lululemon athletica inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women and men. It operates in two segments, Company-Operated Stores and Direct to Consumer. The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga, running, and training, as well as other sweaty pursuits. It also provides fitness-related accessories and footwear. The company sells its products through a chain of company-operated stores; outlets and warehouse sales; interactive workout platform; a network of wholesale accounts, such as yoga studios, health clubs, and fitness centers; temporary locations; and license and supply arrangements, as well as directly to consumer through mobile apps and lululemon.com e-commerce website. As of January 30, 2022, it operated 574 company-operated stores under the lululemon brand in the United States, Canada, the People's Republic of China, Australia, the United Kingdom, Japan, New Zealand, Germany, South Korea, Singapore, France, Malaysia, Sweden, Ireland, the Netherlands, Norway, and Switzerland. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.
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