{"id":247370,"date":"2026-01-20T03:36:16","date_gmt":"2026-01-20T03:36:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/247370\/"},"modified":"2026-01-20T03:36:16","modified_gmt":"2026-01-20T03:36:16","slug":"a-look-at-lululemon-athletica-lulu-valuation-after-raised-fourth-quarter-earnings-guidance","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/247370\/","title":{"rendered":"A Look At Lululemon Athletica (LULU) Valuation After Raised Fourth Quarter Earnings Guidance"},"content":{"rendered":"\n

Find winning stocks<\/a> in any market cycle. Join 7 million investors using Simply Wall St’s investing ideas for FREE.<\/p>\n

lululemon athletica (LULU) has caught investor attention after the company said it now expects fourth quarter fiscal 2025 revenue of US$3.5b to US$3.585b and diluted EPS toward the high end of prior guidance.<\/p>\n

See our latest analysis for lululemon athletica.<\/a><\/p>\n

The raised guidance comes after a mixed run in the stock, with a 90 day share price return of 11.29% contrasting with a 1 year total shareholder return decline of 45.98%. This suggests that recent momentum has improved even as longer term holders remain under pressure.<\/p>\n

If this update has you rethinking the athleisure space, it could be a good moment to widen your search and check out fast growing stocks with high insider ownership<\/a>.<\/p>\n

With lululemon now guiding to the top end of its Q4 ranges and the share price still far below its 1 year level, the key question is whether the current valuation underestimates future earnings power or whether markets are already pricing in future growth.<\/p>\n

According to the most followed narrative, lululemon athletica\u2019s fair value of US$334.88 sits well above the last close of US$201.87. This frames the current debate around how much earnings power is being priced in.<\/p>\n

Positive Analyst Ratings: Recent analyst upgrades and positive ratings reflect growing confidence in Lululemon\u2019s future prospects. Analysts have highlighted the company\u2019s strong growth trajectory, innovative product offerings, and effective management as key reasons for their bullish outlook.<\/p>\n

Read the complete narrative.<\/a><\/p>\n

According to mschoen25, this valuation leans on a measured revenue growth path, firm profit margins and a future earnings multiple more often associated with faster growing names. Curious which specific combination of growth, profitability and valuation assumptions leads to that fair value estimate compared with today\u2019s price?<\/p>\n

Result: Fair Value of $334.88 (UNDERVALUED)<\/p>\n

Have a read of the narrative in full and understand what’s behind the forecasts.<\/a><\/p>\n

However, you still need to weigh risks such as slower annual net income growth of 0.23% and a much lower analyst price target of US$209.35 compared with the US$334.88 fair value.<\/p>\n

Find out about the key risks to this lululemon athletica narrative.<\/a><\/p>\n

That bullish US$334.88 fair value from the user narrative is only one lens. Our DCF model currently suggests a fair value of US$193.08, with lululemon trading at US$201.87. On this view, the shares look slightly overvalued rather than undervalued. Which interpretation seems more realistic to you?<\/p>\n

Look into how the SWS DCF model arrives at its fair value.<\/a><\/p>\n

\"LULU<\/a> LULU Discounted Cash Flow as at Jan 2026 <\/p>\n

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out lululemon athletica for example<\/a>). We show the entire calculation in full. You can track the result in your watchlist<\/a> or portfolio<\/a> and be alerted when this changes, or use our stock screener to discover 868 undervalued stocks based on their cash flows<\/a>. If you save a screener<\/a> we even alert you when new companies match – so you never miss a potential opportunity.<\/p>\n

If you look at these numbers and reach a different conclusion, or simply prefer to test your own assumptions, you can build a full lululemon view in just a few minutes using Do it your way<\/a>.<\/p>\n

A great starting point for your lululemon athletica research is our analysis highlighting 3 key rewards and 2 important warning signs<\/a> that could impact your investment decision.<\/p>\n

Before you move on, give yourself an edge by lining up a few fresh ideas now, so you are not reacting after the market has already moved.<\/p>\n

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.<\/p>\n

Companies discussed in this article include LULU<\/a>.<\/p>\n

Have feedback on this article? Concerned about the content? Get in touch<\/a> with us directly. Alternatively, email editorial-team@simplywallst.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St’s investing ideas for…\n","protected":false},"author":2,"featured_media":247371,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,11628,85,46,132408,11894],"class_list":{"0":"post-247370","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-fair-value","10":"tag-il","11":"tag-israel","12":"tag-lululemon-athletica","13":"tag-undervalued-stocks"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/247370","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=247370"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/247370\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/247371"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=247370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=247370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=247370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}