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 2026-05-04.
Lululemon Athletica Inc. · Consumer Cyclical
$128.98
+307.7% upside to fair value
Grade C
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$366.24
+5153.7% upside to fair value
Grade C
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+5153.7%).
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 |
TSM |
| Current Price |
$128.98 |
$366.24 |
| Fair Value Estimate |
$525.85 |
$19,241.17 |
| Upside to Fair Value |
+307.7%
|
+5153.7%
|
| Market Cap |
$15.1B |
$1,899.5B |
| Forward P/E |
9.7x
|
27.2x
|
| EV / EBITDA |
5.6x
|
17.3x
|
| Price / Sales |
1.4x
|
12.8x
|
| Price / FCF |
16.4x
|
51.6x
|
| Revenue Growth YoY |
+0.8%
|
+36.5%
|
| Gross Margin |
56.6%
|
61.9%
|
| Operating Margin |
19.8%
|
53.2%
|
| Return on Equity |
34.8%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
6.09%
|
1.94%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
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…
Taiwan Semiconductor Manufacturing Company Limited (TSMC) is the world's leading pure-play semiconductor foundry, commanding approximately 60% of the global advanced node foundry market. The company benefits from a durable competitive moat driven by its pioneering foundry model, massive scale, advanced manufacturing capabilities, and strong customer relationships with major technology firms. TSMC…
Accumulation Zones
| Metric |
LULU |
TSM |
| Zone Low |
$394.39 |
$14,430.88 |
| Zone High |
$446.97 |
$16,354.99 |
| In Buy Zone? |
Yes
|
Yes
|