Using the PEG framework with analyst consensus forward EPS growth of 8.0%, Lululemon Athletica Inc. has a fair value of $104.40 based on NTM EPS (FY2026) of $13.05. The current PEG ratio is 3.60.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG tends to undervalue slow growers — consider dividend yield and asset value instead.
| EPS Growth RateForward | 3.2% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| NTM EPS (FY2026) | $13.05 |
| Fair Value | $104.40 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $13.26 | — | — |
| FY2026E | $13.05 | -1.6% | 20 |
| FY2027E | $12.31 | -5.7% | 23 |
| FY2028E | $13.25 | +7.7% | 22 |
| FY2029E | $14.50 | +9.4% | 7 |
| FY2030E | $15.56 | +7.3% | 5 |
5Y Forward EPS CAGR: 3.2%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.
| Year | Net Income | EPS | YoY |
|---|
| FY2021 | $975.3M | $7.49 | — |
| FY2022 | $854.8M | $6.68 | -10.8% |
| FY2023 | $1.6B | $12.20 | +82.6% |
| FY2024 | $1.8B | $14.64 | +20.0% |
| FY2025 | $1.6B | $13.26 | -9.4% |
4Y Historical EPS CAGR: 15.3%