Lululemon's third-quarter 2025 financial report indicates a net revenue increase of 7%, reaching $2.6 billion, surpassing prior quarter performance and management forecasts. Analysis of regional contributions reveals a 2% decline in Americas net revenue, contrasting sharply with a robust 33% increase in international net revenue, indicating a shift in growth drivers. The company's updated fourth-quarter guidance projects a revenue growth deceleration to 3%, signaling a cautious outlook influenced by an observed trend of 'trading down' and increased consumer pursuit of value in the competitive market. Management is adopting a more conservative inventory posture and re-evaluating distribution strategies in light of de minimis provision changes. Despite these headwinds, Lululemon's stock presents a compelling valuation, trading at a forward Price-to-Earnings ratio of 17.03 and a forward Price-to-Operating-Cash-Flow of 11.42. These multiples are at historical lows, dating back to 2016. Based on a proprietary discounted cash flow model, the intrinsic value for Lululemon stock is calculated at $267.83, notably above its current market price of $206.65. This valuation discrepancy suggests that, even after recent market movements, the stock remains significantly undervalued. The analysis concludes with a 'Buy' rating, forecasting continued upward potential for the asset.