LULUNEUTRAL

LULU EV/EBITDA Analysis

5.6x

Updated 81h ago·SEC filings & market data

Key Takeaway

EV/EBITDA measures a company's total value (including debt) relative to its earnings before interest, taxes, depreciation, and amortization; a lower multiple typically suggests a stock is cheaper relative to its cash earnings.

Sector Performance

14th percentile

LULU

5.6x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

5.6x(Aug 2026)

→ Stable

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Deep Analysis

LULU's current multiple of 5.5x is well below the sector median of 13.8x and places it in the 13th percentile among peers, indicating it trades at a discount compared to most similar companies. The metric has been stable over the last eight quarters, with a year-over-year increase of +6.2% and a quarter-over-quarter decrease of -0.2%, showing no dramatic shifts. A low EV/EBITDA combined with a stable trend suggests limited downside valuation risk and a possible value opportunity, but the small recent quarterly decline warrants monitoring. This metric supports the overall NEUTRAL verdict because the low multiple points to potential upside, yet the stable trend and modest changes do not signal a strong catalyst for re-rating.

Frequently Asked Questions

What does the EV/EBITDA tell investors about LULU?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are LULU's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.