Stock fact sheet · data as of
Lululemon Athletica Inc. (LULU): fair value, margin of safety and Wheel Score
Consumer Cyclical · Apparel - Retail · Canada · Value
Is LULU undervalued?
Lululemon Athletica Inc. (LULU) closed at 99.09 on 16 Oct 2026. The GLS average fair value - the simple average of the 8 valuation models that produced a positive number - is 240.75, which puts the price 59% below it. 7 of the 8 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
The 8 models disagree widely: Lynch gives 50.24 while GLS Growth gives 395.47. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files LULU under Value: positive earnings at a P/E of 18 or less.
Nine valuation models for LULU
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 266.47 | +169% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 109.51 | +11% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 202.63 | +104% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 50.24 | -49% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 395.47 | +299% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 377.88 | +281% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 384.22 | +288% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 139.55 | +41% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 6.63 | -93% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 97.67 | -1% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - LULU passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 7.1 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 23.4%, ROE 31.8%, ROA 18.7% - with debt at 0.36 times equity and a free-cash-flow yield of 11.8%.
Lululemon Athletica Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Women's Product 62%, Men's Product 26%, Other Segments 13% (quarter Q2 FY2026).
Institutional ownership scores 9/10, insider activity 5/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 23.4% |
|---|---|---|---|
| GLS Moat | 7.1 / 10 | ROE | 31.8% |
| Debt / equity | 0.36 | ROA | 18.7% |
| Free-cash-flow yield | 11.8% | Payout ratio | 0% |
| Institutions | 9 / 10 | Insiders · Congress | 5 · 1 / 10 |
Wheel Score 89: Prime
LULU scores 89 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (13/20), the GLS moat (11/15), the option premium on offer (20/20) and how easily the stock trades (20/20).
Implied volatility is 44% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 352,132 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 4.8M shares a day on a market cap of $11.5B, with a beta of 0.92; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 59% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 11 / 15 | moat 7.1/10 | |
| Premium | 20 / 20 | implied volatility 44% | |
| Stability | 20 / 20 | 4.8M shares/day, $11.5B cap, beta 0.92 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 10 Dec 2026, 55 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Apparel - Retail
The 12 companies below are the closest to Lululemon Athletica Inc. by market cap within the Apparel - Retail industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| GAP The Gap, Inc. | 23.46 | 76.74 | +69% | 84Prime | $8.2B |
| BURL Burlington Stores, Inc. | 267.79 | 361.33 | +26% | 86Prime | $16.8B |
| URBN Urban Outfitters, Inc. | 84.68 | 132.92 | +36% | 92Prime | $7.3B |
| VSXY Victoria's Secret & Company | 88.39 | 75.84 | -17% | 67Good | $7.1B |
| ANF Abercrombie & Fitch Co. | 152.07 | 291.83 | +48% | 86Prime | $6.5B |
| BOOT Boot Barn Holdings, Inc. | 120.62 | 116.86 | -3% | 71Good | $3.7B |
| AEO American Eagle Outfitters, Inc. | 18.05 | 18.32 | +1% | 71Good | $3.0B |
| BKE The Buckle, Inc. | 46.57 | 50.55 | +8% | 70Good | $2.4B |
| ROST Ross Stores, Inc. | 230.57 | 127.90 | -80% | 70Good | $74.0B |
| CRI Carter's Inc. | 32.64 | 88.45 | +63% | 78Good | $1.2B |
| TJX The TJX Companies, Inc. | 142.80 | 97.87 | -46% | 62Fair | $157.1B |
| CAL Caleres, Inc. | 13.14 | 42.46 | +69% | 75Good | $453M |
⚖ Compare LULU with 7 of them All Consumer Cyclical stocks →
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Start free See the Sunday ScanQuestions about LULU
Is LULU undervalued right now?
By the GLS models, yes: at 99.09 the stock is 59% below the average fair value of 240.75 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of LULU and what does it mean?
LULU scores 89 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for LULU?
240.75 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Lululemon Athletica Inc. report earnings next?
The next earnings report is due on 10 Dec 2026 (after the close), 55 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does LULU have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 352,132 open interest across all expiries and implied volatility of 44% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.