Dolby Laboratories creates audio, imaging, and communication technologies that transform entertainment and communications at the cinema, at home, at work, and on mobile devices. The company was founded in 1965 and is based in San Francisco, California.
DLB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Dolby Laboratories Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Dolby Laboratories Inc ranked in the 14th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 78.83%. The most interesting components of our discounted cash flow analysis for Dolby Laboratories Inc ended up being:
The company's compound free cash flow growth rate over the past 5.75 years comes in at -0.06%; that's greater than only 20.68% of US stocks we're applying DCF forecasting to.
The business' balance sheet suggests that 1% of the company's capital is sourced from debt; this is greater than only 5.88% of the free cash flow producing stocks we're observing.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Consumer Cyclical).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
WBC, FOXF, VFC, WPP, and BXG can be thought of as valuation peers to DLB, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.