LULU vs TSLA: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and Tesla, Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-26.
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
VS
Tesla, Inc. · Consumer Cyclical
$372.11
+45.0% upside to fair value
Med Conviction
Grade C
QuantHub Verdict
TSLA has more upside to fair value
(+45.0%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
TSLA |
| Current Price |
$98.06 |
$372.11 |
| Fair Value Estimate |
$99.50 |
$539.56 |
| Upside to Fair Value |
+1.5%
|
+45.0%
|
| Market Cap |
$11.1B |
$1,469.7B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
121.7x
|
| Price / Sales |
1.0x
|
14.2x
|
| Price / FCF |
8.2x
|
209.1x
|
| Revenue Growth YoY |
-4.3%
|
+25.5%
|
| Gross Margin |
56.1%
|
18.9%
|
| Operating Margin |
17.8%
|
4.2%
|
| Return on Equity |
29.7%
|
4.6%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
12.24%
|
0.48%
|
| Analyst Consensus |
Sell
|
Hold
|
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…
Tesla, Inc. designs, manufactures and sells electric vehicles and energy generation and storage systems, operating through Automotive and Energy Generation and Storage segments with 134,785 full-time employees and a market capitalization of $1,469.67 billion at a share price of $372.11. The business quality is mixed: revenue grew 25.5% year over year in the most recent quarter, but earnings fell …
Accumulation Zones
| Metric |
LULU |
TSLA |
| Zone Low |
$74.62 |
$404.67 |
| Zone High |
$84.58 |
$458.63 |
| In Buy Zone? |
No
|
Yes
|