Dolby Stock Analysis, Valuation (NYSE:DLB)

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$65.56 $0.15 (0.23%) DLB stock closing price Jun 18, 2018 (Closing)

View the Dolby stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for DLB stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Dolby Laboratories, Inc. Stock Rating 3.2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for DLB stock analysis. Dolby valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Dolby stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy DLB stock?

  • Dolby's revenue growth came in at 12.7% in 2018-03.
  • The company saw a significant growth in revenue with a 5 year CAGR of 4.4.
  • Dolby's average operating margin of 25.32 was exceptional.
  • LTM Net margins were good at 7.6% for Dolby.
  • The company has a good Free Cash Flow (FCF) margin of 20.1.

Should you sell DLB stock?

  • The company is trading at a price to sales multiple of 6, which is overvalued in comparison to the Consumer Discretionary sector average multiple of 1.6.

Comments on this video and Dolby stock

Investors can use Amigobulls Dolby stock analysis as a tool to arrive at accurate conclusions regarding financial health of the company and its valuation. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, Dolby revenue growth along with the profit or net income give a clear picture of the financial health. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.