Lululemon Athletica Inc (LULU) is undervalued and Urban Outfitters Inc (URBN) is undervalued.
Against our estimates of intrinsic value, LULU trades at the wider discount: a margin of safety of +68%, against +38% for URBN.
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 9.9% (average of 3 methods) values the shares at $120.84; the price of $75.02 is 38% below that value, and 73% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
| Metric | LULU | URBN |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $103.73 | $75.02 |
| Intrinsic value | $323.61 | $120.84 |
| Margin of safety | +68% | +38% |
| Leak Score | 100/100 (3/12) | 100/100 (3/12) |
| Market cap | $12.0B | $6.4B |
| Revenue growth, 5 years | 20.3% | 12.3% |
| Operating margin | 18.0% | 11.3% |
| Net margin | 12.8% | 8.8% |
| Return on equity | 30.9% | 20.9% |
| Debt to equity | 0.45 | 0.43 |
| P/E | 8.5x | 11.7x |
| Forward P/E | 12.3x | 10.9x |
| P/B | 2.4x | 2.3x |