LULU vs NOW: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and ServiceNow, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-21.
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
VS
ServiceNow, Inc. · Technology
$139.82
+16.2% upside to fair value
Med Conviction
Grade A-
High Quality
QuantHub Verdict
NOW has more upside to fair value
(+16.2%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
NOW |
| Current Price |
$98.06 |
$139.82 |
| Fair Value Estimate |
$99.50 |
$162.50 |
| Upside to Fair Value |
+1.5%
|
+16.2%
|
| Market Cap |
$11.1B |
$144.6B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
43.1x
|
| Price / Sales |
1.0x
|
9.8x
|
| Price / FCF |
8.2x
|
31.5x
|
| Revenue Growth YoY |
-4.3%
|
+24.0%
|
| Gross Margin |
56.1%
|
74.8%
|
| Operating Margin |
17.8%
|
11.4%
|
| Return on Equity |
29.7%
|
13.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
12.24%
|
3.17%
|
| Analyst Consensus |
Sell
|
Strong Buy
|
Investment Thesis
Lululemon Athletica designs and retails premium athletic apparel and accessories through company-owned stores and direct-to-consumer channels, with roughly 39,000 employees and a brand built on technical fabrics and community-led fitness positioning. The business still earns high returns on equity of 29.7% and generates $12.00 of free cash flow per share on $97.70 of revenue per share, with TTM g…
ServiceNow provides a cloud-based enterprise workflow platform spanning IT service management, operations, employee workflows, CRM, AI orchestration and security. Business quality is high because its common data model, deeply embedded workflows and cross-department deployments create meaningful switching costs, while roughly 90% of the Fortune 500 use the platform and more than 85 billion workflo…
Accumulation Zones
| Metric |
LULU |
NOW |
| Zone Low |
$74.62 |
$121.88 |
| Zone High |
$84.58 |
$138.12 |
| In Buy Zone? |
No
|
No
|