Lululemon Athletica Valuation
| LULU Stock | USD 334.76 1.37 0.41% |
At this time, the firm appears to be fairly valued. Lululemon Athletica secures a last-minute Real Value of $341.49 per share. The latest price of the firm is $334.76. Our model forecasts the value of Lululemon Athletica from analyzing the firm fundamentals such as Return On Equity of 0.42, profit margin of 0.16 %, and Current Valuation of 41.34 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will merge together. Key fundamental drivers impacting Lululemon Athletica's valuation include:
Price Book 10.0078 | Enterprise Value 41.3 B | Enterprise Value Ebitda 16.0496 | Price Sales 4.4031 | Forward PE 23.753 |
Fairly Valued
Today
Please note that Lululemon Athletica's price fluctuation is very steady at this time. Calculation of the real value of Lululemon Athletica is based on 3 months time horizon. Increasing Lululemon Athletica's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Lululemon Athletica is useful when determining the fair value of the Lululemon stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Lululemon Athletica. Since Lululemon Athletica is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Lululemon Stock. However, Lululemon Athletica's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 334.76 | Real 341.49 | Target 431.91 | Hype 334.1 |
The real value of Lululemon Stock, also known as its intrinsic value, is the underlying worth of Lululemon Athletica Company, which is reflected in its stock price. It is based on Lululemon Athletica's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Lululemon Athletica's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Lululemon Athletica's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Lululemon Athletica helps investors to forecast how Lululemon stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Lululemon Athletica more accurately as focusing exclusively on Lululemon Athletica's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Lululemon Athletica's intrinsic value based on its ongoing forecasts of Lululemon Athletica's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Lululemon Athletica's closest peers. When choosing an evaluation method for Lululemon Athletica, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Lululemon Athletica Investments |
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Lululemon Valuation Trend
Knowing Lululemon Athletica's actual value is paramount for traders to make sound investment determinations. Lululemon Athletica's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Lululemon Athletica's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Lululemon Athletica's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Lululemon Market Cap
Lululemon Athletica is currently regarded as number one stock in market capitalization category among related companies. Market capitalization of Consumer Discretionary industry is now estimated at about 47.08 Billion. Lululemon Athletica totals roughly 42.37 Billion in market capitalization claiming about 90% of stocks in Consumer Discretionary industry.Lululemon Athletica Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Lululemon Athletica's current stock value. Our valuation model uses many indicators to compare Lululemon Athletica value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Lululemon Athletica competition to find correlations between indicators driving Lululemon Athletica's intrinsic value. More Info.Lululemon Athletica is currently regarded as number one stock in price to earning category among related companies. It is currently regarded as number one stock in price to book category among related companies fabricating about 0.12 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Lululemon Athletica is roughly 8.07 . Price To Book Ratio is likely to gain to 16.98 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Lululemon Athletica by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Lululemon Athletica's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Lululemon Athletica's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Lululemon Athletica's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Lululemon Athletica and how it compares across the competition.
About Lululemon Athletica Valuation
The stock valuation mechanism determines the current worth of Lululemon Athletica on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Lululemon Athletica. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Lululemon Athletica based exclusively on its fundamental and basic technical indicators. By analyzing Lululemon Athletica's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Lululemon Athletica's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Lululemon Athletica. We calculate exposure to Lululemon Athletica's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Lululemon Athletica's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 5.6 B | 5.9 B | |
| Pretax Profit Margin | 0.23 | 0.19 | |
| Operating Profit Margin | 0.23 | 0.19 | |
| Net Profit Margin | 0.16 | 0.13 | |
| Gross Profit Margin | 0.58 | 0.56 |
8 Steps to conduct Lululemon Athletica's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Lululemon Athletica's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Lululemon Athletica's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Lululemon Athletica's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Lululemon Athletica's revenue streams: Identify Lululemon Athletica's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Lululemon Athletica's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Lululemon Athletica's growth potential: Evaluate Lululemon Athletica's management, business model, and growth potential.
- Determine Lululemon Athletica's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Lululemon Athletica's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Lululemon Athletica Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Lululemon Athletica does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 127.1 M | |
| Quarterly Earnings Growth Y O Y | 4.639 | |
| Forward Price Earnings | 23.753 |
Lululemon Athletica Current Valuation Indicators
Valuation refers to the process of determining the present value of Lululemon Athletica and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Lululemon we look at many different elements of the entity such as Lululemon's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Lululemon Athletica's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Lululemon Athletica's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Lululemon Athletica, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Lululemon Athletica's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Lululemon Athletica's worth.When determining whether Lululemon Athletica is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Lululemon Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Lululemon Athletica Stock. Highlighted below are key reports to facilitate an investment decision about Lululemon Athletica Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Lululemon Athletica. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis. For more information on how to buy Lululemon Stock please use our How to Invest in Lululemon Athletica guide.You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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When running Lululemon Athletica's price analysis, check to measure Lululemon Athletica's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lululemon Athletica is operating at the current time. Most of Lululemon Athletica's value examination focuses on studying past and present price action to predict the probability of Lululemon Athletica's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lululemon Athletica's price. Additionally, you may evaluate how the addition of Lululemon Athletica to your portfolios can decrease your overall portfolio volatility.
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Is Lululemon Athletica's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lululemon Athletica. If investors know Lululemon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lululemon Athletica listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 4.639 | Earnings Share 12.21 | Revenue Per Share 75.906 | Quarterly Revenue Growth 0.156 | Return On Assets 0.2173 |
The market value of Lululemon Athletica is measured differently than its book value, which is the value of Lululemon that is recorded on the company's balance sheet. Investors also form their own opinion of Lululemon Athletica's value that differs from its market value or its book value, called intrinsic value, which is Lululemon Athletica's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lululemon Athletica's market value can be influenced by many factors that don't directly affect Lululemon Athletica's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lululemon Athletica's value and its price as these two are different measures arrived at by different means. Investors typically determine if Lululemon Athletica is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lululemon Athletica's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.