* Note: Prices are in Million (M) USD.
Description:
lululemon athletica inc. The company is headquartered in Vancouver, Canada.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $1,325 M
Debt : $1,707 M
EBITDA : $2,875 M
Net Debt (Debt - Cash): $382 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Apparel stores
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 12.60
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $382 M
Average Revenue: $3,020 M
Revenue Converted To Free Cash Flow (%): 12.7%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-01-31): $10,588 M
Revenue 4 Years Ago (2021-01-31): $4,402 M
Last 5 Years Average Revenue Growth: 28%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-01-31): $124 M
Share Count 5 Years Ago (2021-01-31): $131 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $13.05
Trailing 12-Month Earnings Per Share (EPS): $12.96
Average Earnings Per Share (EPS): $13.01
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 27.2%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $164
52-Week Low: $186
Threshold Price (15% Above 52-Week Low): $214
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $23,995 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 32 points to above Lululemon Athletica Inc. (LULU) stock.
Last 9 Years Avg PE
35.19, Fair Value PE
15, Industry Based PE
15, Growth Based PE
28.11, RCFC Based PE
12.66, ROE Based PE
27.24, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 7 values, average assigned is
21.54. Value-Trades has assined P/E value
21.54. An average (Current Year EPS + Next Year EPS) earning per share is
$13.005.
Fair value using multiple P/Es (blended): $280.17 (PE 21.54 × EPS $13.01)
So the Final Fair Value is: $280.17
