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 2026-07-17.
Lululemon Athletica Inc. · Consumer Cyclical
$116.33
+45.0% upside to fair value
Med Conviction
Grade B-
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$409.74
+45.0% upside to fair value
Grade C
High Quality
Valuation & Fundamentals
| Metric |
LULU |
TSM |
| Current Price |
$116.33 |
$409.74 |
| Fair Value Estimate |
$168.68 |
$594.12 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$13.2B |
$2,125.1B |
| Forward P/E |
—
|
38.8x
|
| EV / EBITDA |
5.3x
|
17.6x
|
| Price / Sales |
1.2x
|
14.5x
|
| Price / FCF |
10.3x
|
58.4x
|
| Revenue Growth YoY |
+4.3%
|
+36.0%
|
| Gross Margin |
55.7%
|
61.9%
|
| Operating Margin |
18.2%
|
53.2%
|
| Return on Equity |
31.3%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
9.69%
|
1.71%
|
| Analyst Consensus |
Hold
|
Strong 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…
Taiwan Semiconductor Manufacturing Company Limited (TSM) is a leading semiconductor foundry specializing in advanced chip manufacturing technologies. The company exhibits high business quality with a durable competitive moat driven by cost advantages, intangible assets, and strong brand recognition. It demonstrates robust profitability with a net margin of 47.0% and a return on equity of 36.9%. R…
Accumulation Zones
| Metric |
LULU |
TSM |
| Zone Low |
$126.51 |
$445.59 |
| Zone High |
$143.38 |
$505.00 |
| In Buy Zone? |
Yes
|
Yes
|