Enterprise Value to FCFF (EV/FCFF)
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Dividend Discount Model (DDM)
- Current Ratio since 2008
- Total Asset Turnover since 2008
- Price to Book Value (P/BV) since 2008
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Free Cash Flow to The Firm (FCFF)
lululemon athletica inc., FCFF calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
- Net Cash Provided by Operating Activities
- The net cash provided by operating activities shows an overall upward trend from 2020 through 2025, despite some fluctuations. Starting at $669.3 million in 2020, it increased to $803.3 million in 2021, and then saw a significant rise to $1.39 billion in 2022. However, there was a decline to $966.5 million in 2023 before sharply increasing again to approximately $2.3 billion in both 2024 and 2025. This pattern indicates increased operational efficiency and cash generation capacity in recent years, with a notable recovery and growth after the dip in 2023.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm also exhibited growth over the analyzed periods, with some volatility. It rose from $386.5 million in 2020 to $574.2 million in 2021, followed by a strong increase to nearly $995 million in 2022. In 2023, FCFF dropped considerably to about $327.9 million, reflecting reduced free cash generation during that year. Subsequently, it rebounded significantly to $1.64 billion in 2024 and slightly declined to $1.58 billion in 2025. Despite the dip in 2023, FCFF generally follows the improving trend in operating cash flow, indicating enhanced capacity to generate free cash over the longer term.
- Overall Insights
- Both operational cash flow and free cash flow have shown growth over the period analyzed, suggesting strengthening financial health and operational performance. The notable decrease in 2023 followed by a substantial recovery in 2024 and 2025 may reflect specific operational challenges or investment cycles in that year. The close correlation between net operating cash flow and free cash flow indicates effective management of capital expenditures relative to operating inflows. The large increases in the most recent years imply improved cash generation capabilities, which could be leveraged for strategic investments, debt reduction, or shareholder returns.
Interest Paid, Net of Tax
lululemon athletica inc., interest paid, net of tax calculation
US$ in thousands
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
2 2025 Calculation
Interest paid, tax = Interest paid × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate exhibited some variability over the observed periods. Starting at 28.1% in February 2020, the rate remained steady into January 2021. It then showed a slight decline to 26.9% by January 2022. However, there was a notable increase to 35.9% in January 2023, representing the highest rate in the period analyzed. Following this peak, the rate decreased to 28.8% in January 2024 and saw a minor uptick to 29.6% by February 2025. Overall, despite fluctuations, the tax rate stayed mainly within the high twenties percentile range except for the spike in early 2023.
- Interest Paid, Net of Tax (US$ in thousands)
- Interest paid, net of tax, displayed a fluctuating pattern with generally low absolute values throughout the periods. It began at US$234 thousand in February 2020 and declined sharply to US$79 thousand by January 2021. The interest payment further dropped to a minimal US$9 thousand in January 2022 before increasing somewhat to US$74 thousand in January 2023. The upward trend continued with payments rising to US$167 thousand in January 2024 and reaching US$337 thousand by February 2025, representing the highest interest expense during the timeframe. The overall trend suggests diminishing interest payments early on, followed by a steady increase from 2022 onwards.
Enterprise Value to FCFF Ratio, Current
lululemon athletica inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Nike Inc. | |
| EV/FCFF, Sector | |
| Consumer Durables & Apparel | |
| EV/FCFF, Industry | |
| Consumer Discretionary | |
Based on: 10-K (reporting date: 2025-02-02).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
lululemon athletica inc., historical EV/FCFF calculation, comparison to benchmarks
| Feb 2, 2025 | Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Enterprise value (EV)1 | |||||||
| Free cash flow to the firm (FCFF)2 | |||||||
| Valuation Ratio | |||||||
| EV/FCFF3 | |||||||
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Nike Inc. | |||||||
| EV/FCFF, Sector | |||||||
| Consumer Durables & Apparel | |||||||
| EV/FCFF, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2025-02-02), 10-K (reporting date: 2024-01-28), 10-K (reporting date: 2023-01-29), 10-K (reporting date: 2022-01-30), 10-K (reporting date: 2021-01-31), 10-K (reporting date: 2020-02-02).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value demonstrates a fluctuating trend over the analyzed periods. Starting at approximately $25.0 billion, it increased significantly to nearly $40.2 billion in the subsequent year and peaked near $42.7 billion. Following this, there was a decline to about $39.6 billion, succeeded by a notable rise to approximately $58.1 billion. The most recent data indicate a reduction to around $39.2 billion. These movements reflect variability in market valuation and capital structure considerations.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow to the firm has experienced substantial growth overall but with intermittent variation. Initially at approximately $386.5 million, it rose steadily to almost $574.2 million and then sharply to nearly $995 million. A decline was observed thereafter, reaching around $327.9 million, before sharply increasing again to about $1.64 billion and maintaining a similar level of approximately $1.58 billion in the latest period. This pattern suggests phases of increased operational efficiency and cash generation capability interspersed with temporary constraints or investments.
- EV/FCFF Ratio
- The EV to FCFF ratio presents significant volatility. It started at a value of 64.8, rose further to a peak of nearly 70.0, then dropped to about 43.0. The ratio surged to an elevated level of approximately 120.7, indicative of an increased enterprise value relative to free cash flow. Following this peak, the ratio declined sharply to about 35.3 and further decreased to 24.8 by the most recent date. The downward trend in the latter periods suggests an improved valuation relative to cash flow, potentially indicating enhanced profitability or market reassessment of cash-generating capacity.
- Summary
- The overall analysis reveals dynamic changes in valuation and cash flow generation. Enterprise value has shown pronounced fluctuations, with peaks and declines likely reflecting external market conditions and strategic corporate actions. Free cash flow exhibited notable improvement despite intermittent decreases, demonstrating growing operational cash generation potential. The EV/FCFF ratio’s fluctuation, particularly its significant decline in recent periods, points to a more favorable valuation in relation to cash flow, possibly reflective of improved financial health or market confidence.