lululemon athletica inc. (LULU) fair value analysis

S&P 500 · Updated 2026-09-07

Lululemon Athletica Inc. is a retailer of athletic apparel, footwear, and accessories designed for yoga, running, training, and other fitness activities. The company operates stores across North America, Europe, Asia-Pacific, and other international markets, as well as through its digital e-commerce channels.

Forward Fair Value verdict

Undervalued

Based on TickrTrends' weekly Forward Fair Value model, LULU is trading at more than a 25% discount to estimated fair value.

LULU currently ranks #1 of 88 Consumer Cyclical stocks by discount to Forward Fair Value. It has screened as Undervalued for 3 consecutive weekly runs.

Last price: $100.61
Sector: Consumer Cyclical
12-month range: $118.00–$210.81

Derived indicators

Coarse bands from TickrTrends' weekly models; exact figures are part of the full report.

Quality grade: B
Leverage: Low
Margin trend: Stable
Revenue growth: Strong
RSI zone: Neutral
52-week position: The bottom quarter of its range
DCF cross-check: Undervalued

What our data shows for LULU

Our model validated 17 trailing price-to-earnings windows for LULU, built from quarterly earnings records.
Shares are trading in the lower third of their 12-month price range of $118.00–$210.81.
The 14-day relative strength index sits at a neutral 30.

The exact numbers are one step away

The precise Forward Fair Value dollar figure for LULU
Exact discount / premium to today's price
The normalized historical P/E behind the estimate, and how many quarters support it
Forward EPS input and fiscal-year basis
Screeners and rankings across the full S&P 500 and Nasdaq universes

See the exact fair value →

How Forward Fair Value works

TickrTrends computes a Forward Fair Value for every covered stock each week: a conservatively normalized historical price-to-earnings multiple is applied to the analyst-consensus earnings estimate for the next full fiscal year. Every input window is validated for continuity and every result is screened for plausibility before publication.

Recent LULU news

TickrTrends' derived news-sentiment signal for LULU is currently mixed, computed from recent coverage.

Lululemon billionaire Chip Wilson, wife divorcing after 20-plus years without prenup: report (foxbusiness.com, 2026-09-08)
TickrTrends take: Lululemon's leadership faces potential disruption as founder Chip Wilson navigates a high-profile divorce without a prenuptial agreement, an outcome that could affect both his stake in the company and his involvement in strategic decisions. While TickrTrends currently rates LULU as undervalued, investors should monitor how any changes to Wilson's ownership position or his role in the Consumer Cyclical retailer might influence governance and capital allocation going forward. The separation's financial implications for Wilson personally could theoretically create pressure on his LULU holdings, though the extent of any market impact would depend on the final settlement terms and timeline.
Lululemon Stock Price Drop: Why LULU Fell 17% to an 8-Year Low (financefeeds.com, 2026-09-07)
TickrTrends take: Lululemon's recent 17% decline to an 8-year low occurs against TickrTrends' assessment that the stock is undervalued, suggesting the market may be pricing in concerns that exceed the company's fundamental value. For valuation-focused investors, the critical question becomes whether this sell-off represents a temporary repricing in the Consumer Cyclical sector or reflects deteriorating business fundamentals that justify the extended decline. Monitoring whether the company can stabilize operations and demonstrate demand resilience will be essential to validating or challenging the undervalued designation.
LULU Looks 68.7% Undervalued on GF Value™ Amid Founder Divorce and Stock Drop (gurufocus.com, 2026-09-05)
TickrTrends take: Lululemon's significant decline has created a gap between its current market price and its intrinsic value estimate according to GF Value metrics. The founder divorce and associated stock pressure have contributed to this valuation disconnect at a time when TickrTrends also identifies the stock as undervalued. Investors focused on valuation should monitor whether the company's operational fundamentals and brand strength can support a recovery toward fair value, particularly given the cyclical nature of the consumer sector.

What people are saying

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TickrTrends weekly updates

2026-09-07 — No material change this week: the verdict, bands and grades all held steady.
2026-09-06 — Lululemon Athletica's valuation indicators shifted this week, with the DCF cross-check band moving from an overvalued assessment to an undervalued one, aligning with the current undervalued verdict. This change reflects a downward adjustment in the company's perceived fair value relative to its market price, suggesting improved value relative to fundamental analysis. The shift indicates that Lululemon's stock may now offer better value proposition for investors analyzing the Consumer Cyclical sector.
2026-08-31 — TickrTrends initiated weekly Forward Fair Value coverage of this stock.

Frequently asked questions

Is LULU stock undervalued?

Based on TickrTrends' Forward Fair Value model (updated 2026-09-07), LULU is trading at more than a 25% discount to estimated fair value and screens as undervalued. The exact fair value and discount are available to subscribers.

What is LULU's TickrTrends verdict?

LULU's current verdict is Undervalued, refreshed with every weekly Forward Fair Value run.

How does LULU compare to other Consumer Cyclical stocks?

LULU ranks #1 of 88 Consumer Cyclical stocks in TickrTrends' coverage when sorted by discount to Forward Fair Value.

Is LULU overbought or oversold?

LULU's 14-day RSI is in neutral territory - neither overbought nor oversold.

All Consumer Cyclical fair-value coverage →

Head-to-head comparisons

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