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Lululemon Athletica Graham Number

: $55.33 (As of Apr. 2022)
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Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2022-08-15), the stock price of Lululemon Athletica is $330.34. Lululemon Athletica's graham number for the quarter that ended in Apr. 2022 was $55.33. Therefore, Lululemon Athletica's Price to Graham Number ratio for today is 5.97.

The historical rank and industry rank for Lululemon Athletica's Graham Number or its related term are showing as below:

LULU' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.11   Med: 3.93   Max: 16.4
Current: 5.97

During the past 13 years, the highest Price to Graham Number ratio of Lululemon Athletica was 16.40. The lowest was 1.11. And the median was 3.93.

LULU's Price-to-Graham-Number is ranked worse than
93.37% of 724 companies
in the Retail - Cyclical industry
Industry Median: 1.22 vs LULU: 5.97

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


Lululemon Athletica Graham Number Historical Data

The historical data trend for Lululemon Athletica's Graham Number can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lululemon Athletica Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Graham Number
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.13 29.89 40.50 40.31 54.71

Lululemon Athletica Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Graham Number Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.00 49.18 50.46 54.74 55.33

Competitive Comparison

For the Apparel Retail subindustry, Lululemon Athletica's Graham Number, along with its competitors' market caps and Graham Number data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Lululemon Athletica Graham Number Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Lululemon Athletica's Graham Number distribution charts can be found below:

* The bar in red indicates where Lululemon Athletica's Graham Number falls into.



Lululemon Athletica Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

Lululemon Athletica's Graham Number for the fiscal year that ended in Jan. 2022 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*17.758*7.49)
=54.71

Lululemon Athletica's Graham Number for the quarter that ended in Apr. 2022 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*17.291*7.87)
=55.33

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Lululemon Athletica  (NAS:LULU) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

Lululemon Athletica's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Apr. 2022 )
=330.34/55.33
=5.97

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


Lululemon Athletica Graham Number Related Terms

Thank you for viewing the detailed overview of Lululemon Athletica's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


Lululemon Athletica Business Description

Lululemon Athletica logo
Address
1818 Cornwall Avenue, Vancouver, BC, CAN, V6J 1C7
Lululemon Athletica Inc. designs, distributes, and markets athletic apparel and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 550 company-owned stores in 17 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
Executives
Neuburger Nicole officer: Chief Brand Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Loehnis Alison director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J1C7
Maestrini Andre officer: EVP, International C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Choe Michelle Sun officer: Chief Product Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVE VANCOUVER A1 V6J 1C7
Burgoyne Celeste officer: Pres Americas&Global Guest C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVE VANCOUVER A1 V6J 1C7
Frank Meghan officer: Chief Financial Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Gibson Kourtney director C/O MARKETAXESS HOLDINGS INC. 55 HUDSON YARDS, 15TH FLOOR NEW YORK NY 10001
White Emily director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Ferris Stephanie director C/O VANTIV, INC. 8500 GOVERNORS HILL DRIVE CINCINNATI OH 45249
Murphy Glenn director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J1C7
Mcneill Jon director 45500 FREMONT BLVD FREMONT CA 94538
Casey Martin Michael director
Morfitt Martha A M director P.O. BOX 1441 MINNEAPOLIS MN 55440-1441
Henry Kathryn director C/O LULULEMON ATHLETICA, INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Mcdonald Calvin director, officer: Chief Executive Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7

Lululemon Athletica Headlines

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