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 2026-05-04.
Lululemon Athletica Inc. · Consumer Cyclical
$128.98
+307.7% upside to fair value
Grade C
VS
Tesla, Inc. · Consumer Cyclical
$387.51
-47.6% upside to fair value
Grade D
QuantHub Verdict
LULU has more upside to fair value
(+307.7%).
LULU trades at a lower forward P/E
(9.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
LULU |
TSLA |
| Current Price |
$128.98 |
$387.51 |
| Fair Value Estimate |
$525.85 |
$203.09 |
| Upside to Fair Value |
+307.7%
|
-47.6%
|
| Market Cap |
$15.1B |
$1,454.1B |
| Forward P/E |
9.7x
|
330.0x
|
| EV / EBITDA |
5.6x
|
122.9x
|
| Price / Sales |
1.4x
|
15.3x
|
| Price / FCF |
16.4x
|
233.8x
|
| Revenue Growth YoY |
+0.8%
|
-3.1%
|
| Gross Margin |
56.6%
|
18.0%
|
| Operating Margin |
19.8%
|
4.6%
|
| Return on Equity |
34.8%
|
4.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
6.09%
|
0.43%
|
| Analyst Consensus |
Hold
|
Hold
|
Investment Thesis
Lululemon Athletica Inc. is a premium athletic apparel retailer operating primarily in the consumer cyclical sector with a focus on apparel retail. The company has a strong brand and historically high profitability with a gross margin of 56.6% and ROE of 34.8%, but it faces significant near-term challenges including earnings pressure with a 21.6% decline in earnings in the most recent quarter and…
Tesla, Inc. is a leading global manufacturer of electric vehicles, energy storage, and solar products, led by CEO Elon Musk since 2008. The company has a mixed business quality profile with a strong brand and innovation leadership but faces significant challenges including declining automotive revenue, which fell nearly 10% year-over-year in 2025, and a 3.1% revenue decline in the most recent qua…
Accumulation Zones
| Metric |
LULU |
TSLA |
| Zone Low |
$394.39 |
$152.32 |
| Zone High |
$446.97 |
$172.63 |
| In Buy Zone? |
Yes
|
No
|