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LULU is getting ready for the reversal run!
- beaten down name YTD, cheapest valuation in a decade.
- international expansion will work out in the long run despite creating capex headwins in the shorter timeframe
- beaten down name YTD, cheapest valuation in a decade.
- international expansion will work out in the long run despite creating capex headwins in the shorter timeframe
Note
- For - There could be more reasons for softness in demand in the US because of competition like ALO or consumer is actually weak and isn't spending hundreds for clothing.
- SIlverlining, their international expansion is working especially in China. I believe it's because
- For US consumers, they gotta experiment if giving discounts brings back customers if so then margin compression or if they refresh their product cycle which stimulate the demand organically.
Note
- As for my fair value, my fair value where I wanted to originally add was a yellow line in the chart which is around $165Note
Financials for year | 2025 | 2026 | 2027 | 2028
EPS | 13.98 | 14.66 | 15.29 | 17.88
EPS% | -2.57% | 4.88% | 4.29% | 16.94%
For such a low eps growth but with some brand value. fair forward p/e is 10
Fair stock value:
year | 2025 | 2026 | 2027 | 2028
EPS | 13.98 | 14.66 | 15.29 | 17.88
price | 139 | 146 | 152 | 178
Note
Does - I would say yes, they gotta focus on capturing international markets so that their TAM remains huge and propeller of growth in the years ahead.
Note
- If - In that scenario, we could assign a forward multiple of 15 and fair value becomes:
year | 2025 | 2026 | 2027 | 2028
EPS | 13.98 | 16 | 18.4 | 21.16
price | $209 | $240 | $276 | $317
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.