Discounted Cash Flow

Dolby Laboratories, Inc.

DLB · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $1.0b $185.9m $256.1m 18.1% $1.85
2017 $1.1b (5.4%) $201.8m (8.6%) $271.4m (6.0%) 18.7% (3.0%) $1.98 (7.0%)
2018 $1.2b (8.4%) $122.2m (-39.4%) $279.4m (2.9%) 10.4% (-44.1%) $1.18 (-40.4%)
2019 $1.2b (5.9%) $255.2m (108.7%) $231.4m (-17.2%) 20.5% (97.0%) $2.51 (112.7%)
2020 $1.2b (-6.4%) $231.4m (-9.3%) $277.5m (19.9%) 19.9% (-3.1%) $2.30 (-8.4%)
2021 $1.3b (10.3%) $310.2m (34.1%) $393.3m (41.7%) 24.2% (21.6%) $3.07 (33.5%)
2022 $1.3b (-2.1%) $184.1m (-40.7%) $270.6m (-31.2%) 14.7% (-39.4%) $1.84 (-40.1%)
2023 $1.3b (3.7%) $200.7m (9.0%) $336.7m (24.4%) 15.4% (5.1%) $2.10 (14.1%)
2024 $1.3b (-2.0%) $261.8m (30.5%) $297.2m (-11.7%) 20.6% (33.2%) $2.74 (30.5%)
2025 $1.3b (5.9%) $255.0m (-2.6%) $435.9m (46.6%) 18.9% (-8.0%) $2.66 (-2.9%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model