Dolby Stock Analysis, Valuation (NYSE:DLB)
Dolby Stock Analysis
View Dolby stock analysis video. This is our analyst opinion covering the buy and sell arguments for DLB stock.
Dolby Laboratories, Inc. Stock Rating 3.6/5
Our Dolby stock opinion is based on fundamentals of the company. This Dolby stock analysis is based on latest 2017 Q3 earnings. The stock price analysis takes into account the company's valuation metrics.
Should you buy DLB stock?
- The Year Over Year (YoY) revenue growth for Dolby was 10.1% in 2017 Q3.
- Dolby's average operating margin of 23.7% was exceptional.
- LTM Net margins were good at 19% for Dolby.
- The company has an operating cash flow which is 1.8 times the net income. We see this as a positive signal.
- Dolby generates a high return on invested capital of 14.5%.
- The company has a good Free Cash Flow (FCF) margin of 34.9%.
Should you sell DLB stock?
- Trading at a PE ratio of 29.7, DLB stock is overvalued in comparison to industry average multiple of 21.
- The company is trading at a price to sales multiple of 5.5, which is higher in comparison to the Audio Video Home Products industry average of 1.6, making DLB stock expensive.