Author(s)

Yikun Li ¹

Affiliation(s)

¹ Department of Financial Management, Metropolitan College, Boston University, 199 Wuyi Road, Taiyuan, Shanxi, CN, 030001, China

Corresponding Author

Yikun Li

ABSTRACT

Methods of securities investment analysis methods are numerous, mainly divided into three categories: basic analysis, technical analysis, quantitative analysis. As a widely accepted method of enterprise valuation, DCF (discount cash flow method) analysis is also often used in the analysis of security investment. The paper takes Lululemon Athletica Inc. as an example to conduct the basic components of security investment analysis combined with DCF analysis. The first part includes the presentation of company's basic information, such as brief introduction, fundamentals and financial ratios. Then it uses application of CAPM (capital asset pricing model) and DCF analysis to compute expected stock price of company. In the end, the paper offers strengths and opportunities of the company, and also investment advice for potential investors. In conclusion, Lululemon is a young and developing company, and its stock is underpriced.

KEYWORDS

DCF (discount cash flow method) analysis, Investment advice, Securities investment analysis, CAPM (capital asset pricing model), Enterprise valuation

CITE THIS PAPER

Yikun Li, Securities Investment Analysis: Case of Lululemon. Accounting and Corporate Management (2022) Vol. 4: 36-45. DOI: http://dx.doi.org/10.23977/acccm.2022.040504.

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