Dolby Laboratories, Inc. logo DLB - Dolby Laboratories, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 8
HOLD 6
SELL 3
STRONG
SELL
0
| PRICE TARGET: $90.33 DETAILS
HIGH: $112.00
LOW: $74.00
MEDIAN: $85.00
CONSENSUS: $90.33
UPSIDE: 86.21%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Fair Value Mild
Trading 13.4% below fair value
Current Price $48.51
Bear Case $44.80 7.6% downside ($44.80 - $48.51) / $48.51 = -7.6% $2.97 × 12x P/E
Fair Value $56.01 15.5% upside ($56.01 - $48.51) / $48.51 = 15.5% $2.97 × 15x P/E
Bull Case $67.21 38.5% upside ($67.21 - $48.51) / $48.51 = 38.5% $2.97 × 18x P/E

Adjust Assumptions

15.0x
2.97$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 16.3x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $90.33 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $56.01 per share.

Warnings

Dividend-based valuation: $654.73 (above our primary estimate by 1369%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $90.33 (from 17 analysts). Our estimate is 51% below the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples