LULU — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($176.17)
DCF	$150.14	-14.8%
Graham Number	$111.15	-36.9%
Reverse DCF	—	implied g: 9.7%
DDM	—	—
EV/EBITDA	$184.21	+4.6%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $884.95M

Near-term growth (yrs 1–5)(%)Rev: 7.1% / EPS: -9.7%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.11%

Computed WACC: 9.11%

Cost of equity (Re)9.88%(Rf 4.30% + β 1.01 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)92.22%

Debt weight (D/V)7.78%

Results

Intrinsic Value / share$147.20

Current Price$176.17

Upside / Downside-16.4%

Net Debt (used)$726.93M

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	-0.9%	3.1%	7.1%	11.1%	15.1%
7.0%	$153.07	$184.90	$221.83	$264.47	$313.48
8.0%	$124.13	$149.68	$179.29	$213.44	$252.63
9.0%	$104.11	$125.33	$149.89	$178.17	$210.61
10.0%	$89.43	$107.49	$128.36	$152.37	$179.88
11.0%	$78.20	$93.86	$111.93	$132.69	$156.44

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $14.38

Book Value / share($)Yahoo: $38.18

Results

Graham Number$111.15

Current Price$176.17

Margin of Safety-36.9%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.11%

Terminal growth rate(%)

Computed WACC: 9.11%

Cost of equity (Re)9.88%(Rf 4.30% + β 1.01 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)92.22%

Debt weight (D/V)7.78%

Results

Current Price$176.17

Implied Near-term FCF Growth10.0%

Historical Revenue Growth7.1%

Historical Earnings Growth-9.7%

Base FCF (TTM)$884.95M

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: —

Dividend growth rate (g)(%)

Required return (r)(%)

Results

This company does not pay a dividend. DDM is not applicable — the intrinsic value shown uses D0 = $0 unless you enter a hypothetical dividend above.

DDM Intrinsic Value / share—

Current Price$176.17

Upside / Downside—

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $2.94B

Target EV/EBITDA multipleCurrent: 7.3×

Net Debt($B)Default: $726.93M

Results

Implied Equity Value / share$184.21

Current Price$176.17

Upside / Downside+4.6%

Implied EV$21.39B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	-$1.27B	-$273.07M	$726.93M	$1.73B	$2.73B
3.3x	$97.36	$88.45	$79.53	$70.62	$61.71
5.3x	$149.70	$140.78	$131.87	$122.96	$114.04
7.3x	$202.03	$193.12	$184.21	$175.29	$166.38
9.3x	$254.37	$245.46	$236.54	$227.63	$218.72
11.3x	$306.71	$297.79	$288.88	$279.97	$271.05

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