LULUNEUTRAL

LULU P/E Ratio Analysis

9.2x

Updated 81h ago·SEC filings & market data

Key Takeaway

With a P/E ratio of 9.2x, investors are paying $9.20 for every $1.00 of LULU's earnings — a low multiple that typically signals the stock may be inexpensive relative to its profits.

Sector Performance

7th percentile

LULU

9.2x

Sector Median

23.1x

Sector Avg

33.7x

Prior Period

13.2x(Jun 2026)

↑ Improving

📊

Deep Analysis

With a P/E ratio of 9.2x, investors are paying $9.20 for every $1.00 of LULU's earnings — a low multiple that typically signals the stock may be inexpensive relative to its profits.

This sits well below the sector median of 24.2x, placing LULU in the 5th percentile among sector peers, meaning nearly all comparable companies trade at higher P/E ratios. The metric has been decreasing over the last eight quarters, with a quarter-over-quarter decline of -30.3% (year-over-year change is not available), indicating that earnings have been falling or the stock price has dropped faster than earnings. The combination of a very low P/E and a steep downward trend presents a mixed picture: it could reflect an undervaluation opportunity if earnings stabilize, but the persistent decline also points to deteriorating fundamentals or market skepticism. This mixed signal directly supports the overall NEUTRAL verdict, as the low valuation suggests potential upside while the declining trend cautions against bullish conviction.

Frequently Asked Questions

What does the P/E Ratio tell investors about LULU?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are LULU's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: WELL (102.4x), IAC (104.9x), FORM (108.1x), MCHP (113.5x), MTSI (118.9x).

📚

Learn More About P/E Ratio

DCF Valuation: How to Estimate What a Stock Is Actually Worth

Discounted Cash Flow is the most rigorous way to value a company. It's also the most misunderstood. Here's a plain-English walkthrough with a real example.

The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.