u/Furious_Tuguy ·
Reddit — r/ValueInvesting
· May 01, 2026 at 15:34
· ⬆ 17 pts
· 💬 88 comments
| View on Reddit ↗
AI Summary
Summary
Author u/Furious_Tuguy argues Lululemon (LULU) is undervalued at ~$16B market cap and a P/E of ~10, despite a proxy battle for CEO.
Thesis: the low valuation makes it a “no-brainer” value play; author has taken a position (80 shares + a call).
Quality assessment: Speculation with limited research — no detailed financials or competitive analysis. Relies on a single metric (P/E) and ignores brand erosion warnings.
LULU trades at ~10x P/E with a $16B market cap, historically low multiple for a premium apparel brand. If growth stabilizes or the CEO transition resolves positively, valuation could re-rate to historical average ~20x P/E, offering substantial upside. Deep value play based on mean reversion of earnings multiples; author sees asymmetric risk/reward. Brand irrelevance (noted by top comment), weakening consumer spending, and insider turmoil could further depress earnings and multiple. Proxy battle may distract management.
This Reddit post, published May 01, 2026,
features u/Furious_Tuguy
discussing LULU.
1 trade idea extracted by AI with direction and confidence scoring.