Dolby Laboratories, Inc. cash flow to debt ratio of 1.21K% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Dolby Laboratories, Inc.'s free cash flow has increased 44.75% from $297.25M last year to $430.26M, signaling increasing performance

Dolby Laboratories, Inc.'s debt to equity ratio is 0.02, which means that the company's assets are healthy financed, signaling financial stability.

Dolby Laboratories, Inc.'s debt has increased relative to shareholder equity from 0.02 last year to 0.02 today, signaling weakened financials

Dolby Laboratories, Inc. has a net cash position, so leverage is healthy.

Dolby Laboratories, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Dolby Laboratories, Inc.'s profit margin has decreased (18.76%) in the last year from 20.56% to 16.70%, signaling decreasing performance

Dolby Laboratories, Inc.'s short-term assets of $1.39B exceed its short-term liabilities of $437.79M

Dolby Laboratories, Inc.'s return on assets of 7.17% is higher than the 5.00% threshold, indicating efficient asset utilization

Dolby Laboratories, Inc.'s return on equity of 8.68%, is lower than 15.00%, indicating bad performance

Dolby Laboratories, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Dolby Laboratories, Inc. had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Dolby Laboratories, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Dolby Laboratories, Inc. has a free cash flow yield of 7.28%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Dolby Laboratories, Inc.'s yearly earnings has decreased 2.60% since last year from $261.82M to $255.02M, signaling decreasing performance

Dolby Laboratories, Inc.'s yearly revenue has increased 5.92% since last year from $1.27B to $1.35B, signaling increasing performance

ROIC 7.35% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Dolby Laboratories, Inc.'s 3-year revenue CAGR of 2.47% is positive, indicating growing revenue over the past 3 years

Dolby Laboratories, Inc. had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Dolby Laboratories, Inc. had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Dolby Laboratories, Inc. is undervalued relative to its fair value price of 84.63 based on Discounted Cash Flow model

Dolby Laboratories, Inc. has an earnings yield of 3.86%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Dolby Laboratories, Inc. is overvalued relative to its fair value price of 34.58 based on EBITDA multiple model

Dolby Laboratories, Inc. has an EV/EBITDA ratio of 13.85x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Dolby Laboratories, Inc. is overvalued relative to its fair value price of 33.54 based on Earnings Fair Value model

Dolby Laboratories, Inc. has a PEG-ratio over 1 which is considered overvalued

Dolby Laboratories, Inc. has a price-to-book ratio of 2.26x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Dolby Laboratories, Inc. has a price-to-sales ratio of 4.32x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue