LULU vs WMT: Which Is the Better Buy?
Side-by-side comparison of Lululemon Athletica Inc. and Walmart Inc. — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-09-21.
Lululemon Athletica Inc. · Consumer Cyclical
$98.06
+1.5% upside to fair value
Low Conviction
Grade C
VS
Walmart Inc. · Consumer Defensive
$106.73
-10.8% upside to fair value
Med Conviction
Grade C
High Quality
QuantHub Verdict
LULU has more upside to fair value
(+1.5%).
These are model outputs — not personalized investment advice.
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Valuation & Fundamentals
| Metric |
LULU |
WMT |
| Current Price |
$98.06 |
$106.73 |
| Fair Value Estimate |
$99.50 |
$95.24 |
| Upside to Fair Value |
+1.5%
|
-10.8%
|
| Market Cap |
$11.1B |
$849.4B |
| Forward P/E |
—
|
—
|
| EV / EBITDA |
4.6x
|
21.3x
|
| Price / Sales |
1.0x
|
1.1x
|
| Price / FCF |
8.2x
|
62.8x
|
| Revenue Growth YoY |
-4.3%
|
+5.9%
|
| Gross Margin |
56.1%
|
25.2%
|
| Operating Margin |
17.8%
|
4.4%
|
| Return on Equity |
29.7%
|
22.7%
|
| Dividend Yield |
0% |
0.92% |
| FCF Yield |
12.24%
|
1.59%
|
| Analyst Consensus |
Sell
|
Strong 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…
Walmart Inc. is the world's largest retailer by revenue, operating more than 10,000 stores and clubs across Walmart U.S., Walmart International, and Sam's Club, with a fast-growing e-commerce and advertising ecosystem layered on top of a grocery-led, everyday-low-price model. The business quality is high: scale and sourcing power underpin a durable cost advantage, ROE is 22.7%, and revenue grew 5…
Accumulation Zones
| Metric |
LULU |
WMT |
| Zone Low |
$74.62 |
$71.43 |
| Zone High |
$84.58 |
$80.95 |
| In Buy Zone? |
No
|
No
|