Value Sense
LULU
Lululemon Athletica Inc. (LULU)
Last Price$319.4(4.3%)
Market Cap$40.2B
WACC
9.5%
Cost of Equity
9.8%
Cost of Debt
0.0%
Debt to Equity
3.8%
Beta
1.0
Stock quality
8/10
Great
LULU
is 28.2% overvalued
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LULU WACC

Recent WACC calculation

as of Mar 11, 2025
Cost of Equity
% share of Total Capital
9.8%
96.4%
Risk-free rate
4.3%
Beta
1.2
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
0.0%
3.6%
Average Cost of Debt
0.0%
Effective Tax Rate
30.2%
WACC
9.5%

WACC dynamics

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LULU Cost of Equity

Recent Cost of Equity calculation

as of Mar 11, 2025
Risk-free rate
4.3%
Beta
1.2
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
9.8%

Cost of Equity dynamics

LULU vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Lululemon Athletica Inc. logo
Lululemon Athletica Inc.LULU
9.5%
18.6%
82.5%
16.1%
Median Peer Set
8.7%
6.6%
28.0%
8.0%
On Holding AG logo
On Holding AGONON
10.9%
32.1%
190.1%
10.5%
Boot Barn Holdings, Inc. logo
Boot Barn Holdings, Inc.BOOT
9.5%
0.6%
(14.9%)
8.8%
Urban Outfitters, Inc. logo
Urban Outfitters, Inc.URBN
9.2%
7.7%
40.0%
7.3%
Burlington Stores, Inc. logo
Burlington Stores, Inc.BURL
9.0%
9.4%
48.6%
4.7%
Abercrombie & Fitch Co. logo
Abercrombie & Fitch Co.ANF
8.9%
15.8%
10,783.3%
7.7%
Ross Stores, Inc. logo
Ross Stores, Inc.ROST
8.5%
3.7%
13.8%
9.9%
The Buckle, Inc. logo
The Buckle, Inc.BKE
8.0%
(6.3%)
(14.1%)
17.4%
The TJX Companies, Inc. logo
The TJX Companies, Inc.TJX
7.9%
8.6%
30.0%
8.3%
American Eagle Outfitters, Inc. logo
American Eagle Outfitters, Inc.AEO
6.8%
5.4%
26.1%
3.2%
The Gap, Inc. logo
The Gap, Inc.GPS
6.3%
(4.7%)
N/A
3.4%

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FAQ

What is Lululemon Athletica Inc.'s discount rate as of Mar 11, 2025?

As of Mar 11, 2025, Lululemon Athletica Inc.'s discount rate is 9.49%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Lululemon Athletica Inc.'s capital structure and risk profile.

What is Lululemon Athletica Inc.'s weighted average cost of capital (WACC)?

Lululemon Athletica Inc.'s WACC as of Mar 11, 2025, is 9.49%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Lululemon Athletica Inc.'s cost of equity?

Lululemon Athletica Inc.'s cost of equity is 9.8%, as of Mar 11, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.