Dolby Stock Analysis (NYSE:DLB)
Dolby Analysis Video
View Dolby stock analysis video. This is our DLB analyst opinion covering the buy and sell arguments for DLB stock.
Dolby Laboratories, Inc. Stock Rating (3.3/5)
Our Dolby stock opinion is based on fundamentals of the company. This Dolby stock analysis is based on latest Q2 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy DLB stock?
- The TTM operating margin was good at 23% for Dolby.
- Net margins came in at average 18.3% for Dolby over the last twelve months.
- The operating cash flow looks good at 1.7 times the net income.
- Dolby generates a high return on invested capital of 13.7%.
- Dolby has a healthy FCF (Free Cash Flow) margin of 22%.
Should you sell DLB stock?
- Trading at a PE ratio of 27.1, DLB stock is overvalued in comparison to industry average multiple of 21.1.
- The company is trading at a price to sales multiple of 4.9, which is higher in comparison to the Audio Video Home Products industry average of 1.5, making DLB stock expensive.