LULUNEUTRAL

EV/EBITDA

5.5x

Updated 152h ago

Sector Performance

13th percentile

LULU

5.5x

Sector Median

13.7x

Sector Avg

18.7x

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Deep Analysis

LULU’s enterprise value to EBITDA (EV/EBITDA) of 5.5x means the company's total market value plus debt, minus cash, is 5.5 times its earnings before interest, taxes, depreciation, and amortization — a low multiple typically indicates cheap valuation relative to earnings power.

This sits well below the sector median of 13.4x, placing LULU in the 12th percentile among its peers, suggesting it is priced more conservatively than most comparable companies. The metric has been increasing over the last eight quarters, with the most recent quarter-over-quarter change at +0.7% and a year-over-year change not available. The combination of a very low current level and a rising trend implies that valuation is compressing upward from an extremely discounted base, which could signal improving market recognition or earnings deterioration — both carry potential risk if the trend continues without earnings growth to justify it. This metric supports the overall NEUTRAL verdict because the low absolute valuation offers a margin of safety, but the upward drift in EV/EBITDA reduces the deep-value opportunity and suggests no clear catalyst for immediate outperformance.

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: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

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.