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:
Below please find a table outlining a discounted cash flow forecast for DLB, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Dolby Laboratories Inc ranked in the 19th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Dolby Laboratories Inc, consider:
Interest coverage, a measure of earnings relative to interest payments, is 1,386.2 -- which is good for besting 99.17% of its peer stocks (US stocks in the Consumer Cyclical sector with positive cash flow).
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately merely 5.91% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
DLB's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 54.89% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Dolby Laboratories Inc? See CRMT, BBBY, LUVU, SALM, and CLAR.
In this article we will check out the progression of hedge fund sentiment towards Dolby Laboratories, Inc. (NYSE:DLB) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and […]
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