DCF Tool

DLB

Dolby Laboratories Inc – Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Dolby Laboratories is based in San Francisco with offices in over 20 countries around the globe. Dolby transforms the science of sight and sound into spectacular experiences. Through innovative research and engineering, Dolby creates breakthrough experiences for billions of people worldwide through a collaborative ecosystem spanning artists, businesses, and consumers. The experiences people have - with Dolby Cinema, Dolby Vision, Dolby Atmos, Dolby Audio, and Dolby Voice - revolutionize entertainment and communications at the cinema, on the go, in the home, and at work.
Analysis Results
Intrinsic Value $1,840.59
Latest Price $75.11
Relative Value 96% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 55.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 55.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.4 1.3
2023 2.18 1.89
2024 3.4 2.75
2025 5.3 3.99
2026 8.26 5.8
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 158 billion. This corresponds to a present value of 104 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 15.7 billion. Adding in the terminal value gives a total present value of 119 billion.

There are presently 64.8 million outstanding shares, so the intrinsic value per share is 1840.59.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,520,996,000
Current Cash 2,528,438,000
Current Liabilities 631,434,000
Current Debt 0
Non-Cash Working Capital (NCWC) 361,124,000
Change in NCWC 199,861,000
EBIT 681,518,000
Tax Provision 73,378,000
Depreciation and Amortization 225,514,000
Capital Expenditure -108,908,000
Unlevered Free Cash Flow 927,453,638
Current Assets 1,547,196,000
Current Cash 1,118,824,000
Current Liabilities 267,109,000
Current Debt 0
Non-Cash Working Capital (NCWC) 161,263,000
Change in NCWC 2,932,000
EBIT 220,563,000
Tax Provision 8,096,000
Depreciation and Amortization 90,878,000
Capital Expenditure -68,987,000
Unlevered Free Cash Flow 237,936,828
Current Assets 1,381,540,000
Current Cash 916,356,000
Current Liabilities 306,853,000
Current Debt 0
Non-Cash Working Capital (NCWC) 158,331,000
Change in NCWC 224,705,000
EBIT 293,635,000
Tax Provision 26,802,000
Depreciation and Amortization 85,123,000
Capital Expenditure -113,536,000
Unlevered Free Cash Flow 462,049,528
Current Assets 1,301,954,000
Current Cash 1,096,201,000
Current Liabilities 272,127,000
Current Debt 0
Non-Cash Working Capital (NCWC) -66,374,000
Change in NCWC 42,739,000
EBIT 299,552,000
Tax Provision 190,062,000
Depreciation and Amortization 81,283,000
Capital Expenditure -85,357,000
Unlevered Free Cash Flow 156,243,662
Current Assets 1,011,434,000
Current Cash 874,774,000
Current Liabilities 245,773,000
Current Debt 0
Non-Cash Working Capital (NCWC) -109,113,000
Change in NCWC -18,019,000
EBIT 261,488,000
Tax Provision 54,217,000
Depreciation and Amortization 84,308,000
Capital Expenditure -104,867,000
Unlevered Free Cash Flow 167,669,686
Current Assets 759,730,000
Current Cash 637,741,000
Current Liabilities 213,083,000
Current Debt 0
Non-Cash Working Capital (NCWC) -91,094,000
Change in NCWC -128,916,000
EBIT 233,028,000
Tax Provision 49,502,000
Depreciation and Amortization 85,152,000
Capital Expenditure -221,782,000
Unlevered Free Cash Flow -81,416,501
Current Assets 918,330,000
Current Cash 670,827,000
Current Liabilities 209,681,000
Current Debt 0
Non-Cash Working Capital (NCWC) 37,822,000
Change in NCWC 21,021,000
EBIT 213,148,000
Tax Provision 62,542,000
Depreciation and Amortization 69,133,000
Capital Expenditure -194,968,000
Unlevered Free Cash Flow 54,096,089
Current Assets 1,005,851,000
Current Cash 799,680,000
Current Liabilities 189,370,000
Current Debt 0
Non-Cash Working Capital (NCWC) 16,801,000
Change in NCWC -28,442,000
EBIT 276,121,000
Tax Provision 67,379,000
Depreciation and Amortization 53,278,000
Capital Expenditure -116,668,000
Unlevered Free Cash Flow 116,904,631
Current Assets 812,722,000
Current Cash 594,664,000
Current Liabilities 172,815,000
Current Debt 0
Non-Cash Working Capital (NCWC) 45,243,000
Change in NCWC 27,090,000
EBIT 251,136,000
Tax Provision 60,344,000
Depreciation and Amortization 53,245,000
Capital Expenditure -30,761,000
Unlevered Free Cash Flow 240,248,030
Current Assets 970,286,000
Current Cash 795,293,000
Current Liabilities 156,840,000
Current Debt 0
Non-Cash Working Capital (NCWC) 18,153,000
Change in NCWC -38,267,000
EBIT 363,183,000
Tax Provision 103,857,000
Depreciation and Amortization 43,876,000
Capital Expenditure -167,699,000
Unlevered Free Cash Flow 98,870,732

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