|Company name||Lululemon Athletica inc.|
|Live stock price||[stckqut]LULU[/stckqut]|
|P/E compared to competitors||Fair|
|Confident Investor Rating||Fair|
|Target stock price (TWCA growth scenario)||$121.3|
|Target stock price (averages with growth)||$117.45|
|Target stock price (averages with no growth)||$53.31|
|Target stock price (manual assumptions)||$89.68|
The following company description is from Google Finance: https://finance.google.com/finance?q=lulu
lululemon athletica inc. is a designer, distributor and retailer of athletic apparel. The Company operates through two segments: Company-operated stores and Direct to consumer. It is also engaged in the sale from outlets, showrooms, sales from temporary locations, sales to wholesale accounts, warehouse sales, and license and supply arrangements. Its direct to consumer segment generates revenue from its lululemon and ivivva e-commerce Websites, www.lululemon.com and www.ivivva.com, and other country and region specific Websites. It offers a range of apparel and accessories for women, men and female youth. The Company’s apparel assortment includes items, such as pants, shorts, tops, and jackets designed for healthy lifestyle and athletic activities, such as yoga, running, training, most other sweaty pursuits, and athletic wear for female youth. The Company also offers fitness-related accessories, including an array of items, such as bags, socks, underwear, yoga mats and water bottles.
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 and the indicators that I describe in my book The Confident Investor are favorable. 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: $78.59
- Growth: 0.13
- Current EPS (TTM): $2.01
- P/E: 39
- Future EPS Calc: $3.7
- Future Stock Price Calc: $144.42
- Target stock price: $89.67
I hope that this makes you a Confident Investor.