DCF Tool

LULU

Lululemon Athletica inc. – Other Clothing Stores
yoga is our core, but we also make specialized gear for runners, dancers, bikers, sweaty generalists and stretchy-pants lovers alike. our stores can be found in sydney, jackson, anchorage, cologne, singapore and tons of places in between. our global vision remains the same as it was when we were selling gear out of a vancouver yoga studio in 1998: to inspire and enable people to live long, healthy, fun lives by creating technical, athletic gear to get sweaty in.
Analysis Results
Intrinsic Value $1,189.91
Latest Price $452.93
Relative Value 62% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 37.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 37.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 1.66 1.59
2025 2.28 2.09
2026 3.12 2.74
2027 4.27 3.6
2028 5.85 4.73
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 176 billion. This corresponds to a present value of 136 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 14.7 billion. Adding in the terminal value gives a total present value of 151 billion.

There are presently 127.0 million outstanding shares, so the intrinsic value per share is 1189.91.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,159,453,000
Current Cash 1,154,867,000
Current Liabilities 1,492,198,000
Current Debt 0
Non-Cash Working Capital (NCWC) 512,388,000
Change in NCWC 562,740,000
EBIT 1,726,141,000
Tax Provision 477,771,000
Depreciation and Amortization 291,791,000
Capital Expenditure -638,657,000
Unlevered Free Cash Flow 1,323,136,072
Current Assets 2,614,853,000
Current Cash 1,259,871,000
Current Liabilities 1,405,334,000
Current Debt 0
Non-Cash Working Capital (NCWC) -50,352,000
Change in NCWC -141,036,000
EBIT 1,374,749,000
Tax Provision 358,547,000
Depreciation and Amortization 224,206,000
Capital Expenditure -394,502,000
Unlevered Free Cash Flow 693,881,363
Current Assets 2,124,379,000
Current Cash 1,150,517,000
Current Liabilities 883,178,000
Current Debt 0
Non-Cash Working Capital (NCWC) 90,684,000
Change in NCWC -3,331,000
EBIT 849,828,000
Tax Provision 230,437,000
Depreciation and Amortization 185,478,000
Capital Expenditure -229,226,000
Unlevered Free Cash Flow 563,740,255
Current Assets 1,807,938,000
Current Cash 1,093,505,000
Current Liabilities 620,418,000
Current Debt 0
Non-Cash Working Capital (NCWC) 94,015,000
Change in NCWC 46,530,000
EBIT 889,110,000
Tax Provision 251,797,000
Depreciation and Amortization 161,933,000
Capital Expenditure -283,048,000
Unlevered Free Cash Flow 565,052,103
Current Assets 1,429,282,000
Current Cash 881,320,000
Current Liabilities 500,477,000
Current Debt 0
Non-Cash Working Capital (NCWC) 47,485,000
Change in NCWC -105,698,000
EBIT 705,836,000
Tax Provision 231,449,000
Depreciation and Amortization 122,484,000
Capital Expenditure -225,807,000
Unlevered Free Cash Flow 268,412,292
Current Assets 1,436,282,000
Current Cash 990,501,000
Current Liabilities 292,598,000
Current Debt 0
Non-Cash Working Capital (NCWC) 153,183,000
Change in NCWC -33,259,000
EBIT 494,526,000
Tax Provision 201,336,000
Depreciation and Amortization 108,235,000
Capital Expenditure -157,864,000
Unlevered Free Cash Flow 195,189,479
Current Assets 1,162,737,000
Current Cash 734,846,000
Current Liabilities 241,449,000
Current Debt 0
Non-Cash Working Capital (NCWC) 186,442,000
Change in NCWC -3,611,000
EBIT 421,152,000
Tax Provision 119,348,000
Depreciation and Amortization 87,697,000
Capital Expenditure -149,511,000
Unlevered Free Cash Flow 236,824,230
Current Assets 917,039,000
Current Cash 501,482,000
Current Liabilities 225,504,000
Current Debt 0
Non-Cash Working Capital (NCWC) 190,053,000
Change in NCWC 63,401,000
EBIT 369,076,000
Tax Provision 102,448,000
Depreciation and Amortization 73,383,000
Capital Expenditure -143,487,000
Unlevered Free Cash Flow 259,763,471
Current Assets 951,012,000
Current Cash 664,479,000
Current Liabilities 159,881,000
Current Debt 0
Non-Cash Working Capital (NCWC) 126,652,000
Change in NCWC -4,024,000
EBIT 376,033,000
Tax Provision 144,102,000
Depreciation and Amortization 58,364,000
Capital Expenditure -119,733,000
Unlevered Free Cash Flow 169,209,153
Current Assets 942,839,000
Current Cash 698,649,000
Current Liabilities 113,514,000
Current Debt 0
Non-Cash Working Capital (NCWC) 130,676,000
Change in NCWC 67,159,000
EBIT 391,358,000
Tax Provision 117,579,000
Depreciation and Amortization 49,068,000
Capital Expenditure -106,408,000
Unlevered Free Cash Flow 285,305,759
Current Assets 787,053,000
Current Cash 590,179,000
Current Liabilities 133,357,000
Current Debt 0
Non-Cash Working Capital (NCWC) 63,517,000
Change in NCWC 49,300,000
EBIT 376,439,000
Tax Provision 109,965,000
Depreciation and Amortization 43,000,000
Capital Expenditure -93,229,000
Unlevered Free Cash Flow 266,974,214

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