I did take a position in lululemon athletica ($LULU), and I realize that I did not provide any analysis. I use historical measures to determine a net present value and five year target price based on sales, earnings, and free cash flow. I also insist on financially stable companies. Here are the numbers.
| Present Value | Present Value | Present Value | Five-Year Target | Five-Year Target | Five-Year Target | |
|---|---|---|---|---|---|---|
| Method | Bearish Case | Fair Value | Bullish Case | Bearish Case | Median Case | Bullish Case |
| Revenue | $364.53 | $518.34 | $708.73 | $643.53 | $942.27 | $1,312.07 |
| Earnings | $242.33 | $457.30 | $893.17 | $406.18 | $823.71 | $1,670.30 |
| Free Cash Flow | $246.63 | $283.61 | $336.74 | |||
| Average | $284.50 | $419.75 | $646.21 |
Current Price: $317
Altman-Z: 14.29
Growth Rating: 4-Star
The way I look at it, worst case, is fairly valued now, and all numbers indicate that it will be worth more in five years.
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