Lululemon Athletica Inc (LULU) is undervalued and TJX Companies Inc (TJX) is overvalued.
Against our estimates of intrinsic value, LULU trades at the wider discount: a margin of safety of +68%, against -56% for TJX.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.0% (average of 3 methods) values the shares at $323.61; the price of $103.73 is 68% below that value, and 77% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
Discounting its cash flows at 8.4% (average of 3 methods) values the shares at $83.94; the price of $130.79 is 56% above that value, and 78% of that value comes from beyond year five.
Leak Score 62/100 on 10 of 12 signals
| Metric | LULU | TJX |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $103.73 | $130.79 |
| Intrinsic value | $323.61 | $83.94 |
| Margin of safety | +68% | -56% |
| Leak Score | 100/100 (3/12) | 62/100 (10/12) |
| Market cap | $12.0B | $143.9B |
| Revenue growth, 5 years | 20.3% | 13.4% |
| Operating margin | 18.0% | 12.4% |
| Net margin | 12.8% | 9.7% |
| Return on equity | 30.9% | 62.2% |
| Debt to equity | 0.45 | 1.34 |
| P/E | 8.5x | 24.2x |
| Forward P/E | 12.3x | 22.6x |
| P/B | 2.4x | 13.5x |
| Dividend yield | — | 1.4% |