Lululemon Athletica Inc.Opportunity Rank #44(LULU) Intrinsic Value & DCF Analysis (2026)
Current Price
$110.63
Last updated: Jul 24, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
Trend Score
As of 2026-07-24
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The intrinsic value of Lululemon Athletica Inc. (LULU) is estimated at $493.90 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $110.63, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 7.67% long-term growth rate and a 9.00% discount rate (calculated: 8.62%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of Lululemon Athletica Inc. (LULU) is estimated at $493.90 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $110.63, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 7.67% long-term growth rate and a 9.00% discount rate (calculated: 8.62%), 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
Trend Details
Investment Coach
- Monitor whether valuation discount remains above 10%.
- Confirm ROIC stays above cost of capital over coming quarters.
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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., 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 workout platform and via wholesale partnerships with entities like yoga studios, health clubs, and fitness centers. Further sales occur through temporary pop-up shops, as well as various licensing and supply agreements. A significant portion of sales is conducted directly with consumers through dedicated mobile applications and its primary e-commerce website, lululemon.com. By January 30, 2022, Lululemon boasted 574 stores operating under its brand name across numerous international markets. These markets span 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. Founded in 1998, Lululemon Athletica Inc. maintains its corporate base in Vancouver, Canada.
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