Patent Owners & Lessors
Dolby Laboratories, Inc. creates audio and imaging technologies that transform entertainment and communications at the cinema, DTV transmissions and devices, mobile devices, OTT video and music services, and home entertainment devices. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications; AVC, a digital video codec with high bandwidth efficiency used in various media devices; Dolby AC-4, a digital audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for cinema and various media devices. Its audio technologies also include DD, a digital audio coding technology that provides multichannel sound to applications; DD+, a digital audio coding technology that offers audio transmission for a range of media applications and devices; Dolby TrueHD, a digital audio coding technology providing encoding for media application; Dolby Vision, an imaging technology for cinema and media devices; Dolby Voice, an audio communications technology that emulates the in-person meeting experience; and HEVC, a digital video codec with high bandwidth efficiency for media devices. In addition, the company offers digital cinema servers, cinema processors, amplifiers, loudspeakers, and audio and imaging hardware and software products for the cinema, television, broadcast, communication, and entertainment industries. Further, it provides 3-D glasses and kits; and various services to support theatrical and television production for cinema exhibition, broadcast, and home entertainment. The company serves film studios, content creators, post-production facilities, cinema operators, broadcasters, and video game designers. It sells its products directly to the end users, as well as through dealers and distributors worldwide. Dolby Laboratories, Inc. was founded in 1965 and is headquartered in San Francisco, California.
Discounted Cash Flow Valuation of Dolby Laboratories, Inc.
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $365.3M | $391.2M | $418M | $445.6M | $474.1M | $503.2M | $533.1M | $563.4M | $594.2M | $625.2M | $656.5M | $6.565B |
DCF | $340.2M | $316.1M | $293M | $271.1M | $250.2M | $230.5M | $211.8M | $194.2M | $177.7M | $162.3M | $1.623B | |
Value | $4.07B |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 19% | 18% | 19% | 10% | 21% | 20% | 24% | 15% | 15% | 15% |
ROA | 12% | 10% | 10% | 12% | 10% | 8.2% | 11% | 8% | 8.4% | 7.7% |
ROE | 10% | 9.4% | 9.4% | 5.6% | 11% | 9.5% | 12% | 8.2% | 8.5% | 7.8% |
The average Net Margin over the past 5 years is +17.54%.
The trend of Net Margin over the past 5 years is +0.33%.
The average ROA over the past 5 years is +9.64%.
The trend of ROA over the past 5 years is -0.56%.
The average ROE over the past 5 years is +9.1%.
The trend of ROE over the past 5 years is +0.24%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 09-2015 | 09-2016 | 09-2017 | 09-2018 | 09-2019 | 09-2020 | 09-2021 | 09-2022 | 09-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | - | - | - | - | - | - | - | - | - | - |
Debt Equity | - | - | - | - | - | - | - | - | - | - |
MIN | ||||||||||
Graham Stability | - | - | 100% | 64% | 100% | 100% | 100% | 69% | 83% | 64% |
The Debt/FCF trailing twelve month is -.
The trend of Debt/FCF over the past 5 years is -.
Graham’s Stability measure stands at 0.64.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 09-2016 | 09-2018 | 09-2020 | 09-2022 | Trend |
---|---|---|---|---|---|
Revenue | 3.4% | 2.1% | 3.8% | 3.7% | -0.3% |
Net Income | 1.1% | 10% | -4.6% | 9.1% | 0.6% |
Stockholders Equity | 2.6% | 1.6% | -0.91% | 5.4% | -1.1% |
FCF | 4% | 3.8% | 6.7% | 24% | 1.2% |
The Revenue CAGR over the past 5 years is +2.09%.
The trend of Revenue growth rate over the past 5 years is -0.3%.
The Earnings CAGR over the past 5 years is +10.42%.
The trend of Earnings growth rate over the past 5 years is +0.6%.
The Equity CAGR over the past 5 years is +1.55%.
The trend of Equity growth rate over the past 5 years is -1.09%.
The FCF CAGR over the past 5 years is +3.8%.
The trend of FCF growth rate over the past 5 years is +1.2%.