Dividend Discount Model (DDM)
In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Dividends are the cleanest and most straightforward measure of cash flow because these are clearly cash flows that go directly to the investor.
Paying user area
Try for free
lululemon athletica inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Reportable Segments
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2008
- Current Ratio since 2008
- Price to Earnings (P/E) since 2008
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to lululemon athletica inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Intrinsic Stock Value (Valuation Summary)
lululemon athletica inc., dividends per share (DPS) forecast
US$
| Year | Value | DPSt or Terminal value (TVt) | Calculation | Present value at |
|---|---|---|---|---|
| 0 | DPS01 | |||
| 1 | DPS1 | = × (1 + ) | ||
| 2 | DPS2 | = × (1 + ) | ||
| 3 | DPS3 | = × (1 + ) | ||
| 4 | DPS4 | = × (1 + ) | ||
| 5 | DPS5 | = × (1 + ) | ||
| 5 | Terminal value (TV5) | = × (1 + ) ÷ ( – ) | ||
| Intrinsic value of lululemon athletica inc. common stock (per share) | ||||
| Current share price | ||||
Based on: 10-K (reporting date: 2024-01-28).
1 DPS0 = Sum of the last year dividends per share of lululemon athletica inc. common stock. See details »
Disclaimer!
Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.
Required Rate of Return (r)
| Assumptions | ||
| Rate of return on LT Treasury Composite1 | RF | |
| Expected rate of return on market portfolio2 | E(RM) | |
| Systematic risk of lululemon athletica inc. common stock | βLULU | |
| Required rate of return on lululemon athletica inc. common stock3 | rLULU | |
1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).
3 rLULU = RF + βLULU [E(RM) – RF]
= + [ – ]
=
Dividend Growth Rate (g)
Company does not pay dividends.