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 2026-07-17.
Lululemon Athletica Inc. · Consumer Cyclical
$116.33
+45.0% upside to fair value
Med Conviction
Grade B-
VS
Tesla, Inc. · Consumer Cyclical
$400.49
-1.1% upside to fair value
Grade D
QuantHub Verdict
LULU has more upside to fair value
(+45.0%).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
LULU |
TSLA |
| Current Price |
$116.33 |
$400.49 |
| Fair Value Estimate |
$168.68 |
$396.15 |
| Upside to Fair Value |
+45.0%
|
-1.1%
|
| Market Cap |
$13.2B |
$1,504.1B |
| Forward P/E |
—
|
334.1x
|
| EV / EBITDA |
5.3x
|
124.0x
|
| Price / Sales |
1.2x
|
15.4x
|
| Price / FCF |
10.3x
|
214.9x
|
| Revenue Growth YoY |
+4.3%
|
+15.8%
|
| Gross Margin |
55.7%
|
19.1%
|
| Operating Margin |
18.2%
|
5.0%
|
| Return on Equity |
31.3%
|
4.8%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
9.69%
|
0.47%
|
| Analyst Consensus |
Hold
|
Buy
|
Investment Thesis
Lululemon Athletica is a premium athletic-apparel retailer whose technical-product innovation, powerful brand, direct-to-consumer retail and e-commerce model, and community-led marketing have historically supported high returns, including a 31.3% ROE, 55.7% gross margin, 18.2% operating margin, and 13.0% net margin. The investment case is now a turnaround rather than a clean compounding story: in…
Tesla, Inc. is a leading global electric vehicle manufacturer and energy solutions provider, led by CEO Elon Musk since 2008. The company maintains a strong position in the EV market with a unique fast-charging and software ecosystem, although its EV market share is declining amid intensifying competition. Tesla's business quality is medium due to its narrowing moat and modest profitability, with…
Accumulation Zones
| Metric |
LULU |
TSLA |
| Zone Low |
$126.51 |
$297.11 |
| Zone High |
$143.38 |
$336.73 |
| In Buy Zone? |
Yes
|
No
|