Dolby Stock Analysis, Valuation (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 (3.6/5)
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?
- Dolby sales grew by 10.1% year on year in 2017 Q3.
- Dolby's average operating margin of 23.7% was exceptional.
- Net margins stood at a healthy 19% (average) for Dolby in the Trailing Twelve Months.
- The company has an operating cash flow which is 1.8 times the net income.
- Dolby's return on invested capital of 14.5% is good.
- The company has a good Free Cash Flow (FCF) margin of 34.9%.
Should you sell DLB stock?
- The DLB stock currently trades at a PE of 29.6, which is expensive, compared to the industry average of 20.8.
- The company is trading at a price to sales multiple of 5.5, which is overvalued in comparison to the Audio Video Home Products industry average multiple of 1.6.