|Company name||Lululemon Athletica inc.|
|Live stock price||[stckqut]LULU[/stckqut]|
|P/E compared to competitors||Good|
|Confident Investor Rating||Fair|
|Target stock price (TWCA growth scenario)||$102.16|
|Target stock price (averages with growth)||$105.05|
|Target stock price (averages with no growth)||$51.11|
|Target stock price (manual assumptions)||$101.59|
The following company description is from Google Finance: http://www.google.com/finance?q=lulu
Lululemon Athletica Inc. is a designer, distributor and retailer of technical athletic apparel. The Company’s segments include Company-operated stores, Direct to consumer and Other. The Company offers a line of apparel and accessories for women, men and female youth. Its apparel assortment includes items, such as pants, shorts, tops and jackets designed for healthy lifestyle activities and athletic pursuits, such as yoga, running, other sweaty pursuits and athletic wear for female youth. The Company conducts its business through two channels: Company-operated stores and direct to consumer. It operates approximately 360 Company-operated stores located in the United States, Canada, Australia, New Zealand, the United Kingdom, Singapore, Hong Kong, Germany and Puerto Rico. Its direct to consumer segment includes lululemon and ivivva e-commerce Websites, www.lululemon.com and www.ivivva.com, and other country and region specific Websites.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Lululemon Athletica inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Lululemon Athletica inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $77.38
- Growth: 0.16
- Current EPS (TTM): $1.9
- P/E: 41
- Future EPS Calc: $3.99
- Future Stock Price Calc: $163.61
- Target stock price: $101.59
I hope that this makes you a Confident Investor.