Lululemon Fair Value
LU
The fair market value of LULU stock is 623.88 USD. Relative to the market price of 270.76 USD Lululemon Athletica is undervalued by 130.4%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Lululemon Valuation
Current LULU share ticker price is 270.76 USD.
The fair value level of 623.88 USD can be considered as an effective entry point for long-term investors to start investing in LULU stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 130% lower its fair value
Current price is 73% lower its minimum value
Current price is 242% lower its maximum value
Market price:
LULU stock is greatly undervalued
It means the current price may concern as a Low Risk Entry Point
Lululemon Athletica Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
71.51
2
Median P/E over 5 years
48.21
3
Minimum P/E over 5 years
36.24
4
Earning per share (last 12 months)
12.94 USD
Maximum value
1
x
4
=
925.43 USD
Fair value
2
x
4
=
623.88 USD
Minimum value
3
x
4
=
469 USD
Lululemon Athletica Inc price metrics
6.6
Annual return (geometric mean)
40.6
Risk (standard deviation) of returns
β
1.3
Beta (volatility compared to market)