LULU vs TSM: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-23.
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$452.00
+13.9% upside to fair value
Med Conviction
Grade B
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+13.9%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
TSM |
| Current Price |
$98.06 |
$452.00 |
| Fair Value Estimate |
$99.50 |
$515.00 |
| Upside to Fair Value |
+1.5%
|
+13.9%
|
| Market Cap |
$11.1B |
$2,344.3B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
19.2x
|
| Price / Sales |
1.0x
|
0.5x
|
| Price / FCF |
8.2x
|
2.1x
|
| Revenue Growth YoY |
-4.3%
|
+36.0%
|
| Gross Margin |
56.1%
|
64.2%
|
| Operating Margin |
17.8%
|
56.0%
|
| Return on Equity |
29.7%
|
39.3%
|
| Dividend Yield |
0% |
0.96% |
| FCF Yield |
12.24%
|
47.62%
|
| Analyst Consensus |
Sell
|
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…
Taiwan Semiconductor Manufacturing Company is the world's largest contract chipmaker, manufacturing advanced logic, mixed-signal, RF, and embedded memory wafers for high-performance computing, smartphones, IoT, and automotive customers from a base of 65,152 employees headquartered in Hsinchu, Taiwan. The business quality is exceptionally high: TTM gross margin is 64.2%, TTM operating margin is 56…
Accumulation Zones
| Metric |
LULU |
TSM |
| Zone Low |
$74.62 |
$386.25 |
| Zone High |
$84.58 |
$437.75 |
| In Buy Zone? |
No
|
No
|