Dolby Stock Analysis, Valuation (NYSE:DLB)

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$58.19 $0.01 (0.02%) DLB stock closing price Sep 25, 2017 (Closing)
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Dolby
Updated on : Sep 25, 2017
previous close
DLB 58.2 (0%)
S&P 500 2496.7 (0%)
Closing Price On: Sep 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Audio Video Home Products
Sector :
Consumer Discretionary
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
23.7%
Sector Average:
11.3%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$137.1M
Net Income:
$76M
Dividend Yield
DLB dividend yield:
0.93%
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
DLB PS :
5.5
Industry PS :
1.6
Sector:   Consumer Discretionary.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
14.5%
Return on Equity:
10.1%
Free Cash Flow Margin:
34.9%
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Dolby Stock Analysis

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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.

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