Why Dolby Labs Is Poised to Bounce Back

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, audio technology licensor Dolby Laboratories has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Dolby and see what CAPS investors are saying about the stock right now.

Dolby facts

Headquarters (founded)

San Francisco (1965)

Market Cap

$3.3 billion

Industry

Electronic components

Trailing-12-Month Revenue

$926.3 million

Management

CEO Kevin Yeaman (since March 2009)

CFO Lewis Chew (since June 2012)

Return on Equity (average, past 3 years)

18.3%

Cash/Debt

$795.3 million / $0

Competitors

DTS

SRS Labs

THX


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 4,064 members who have rated Dolby believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, kram789, tapped Dolby as a particularly sound bargain opportunity:

Dolby is under valued. With their margins a P/E of 18 would not be out of line. The company has experienced some retraction in earnings and revenue, but has a history of excellent management and innovation. What we are really betting on is that they will innovate and be part of the next generation in computing.

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The article Why Dolby Labs Is Poised to Bounce Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Dolby Laboratories. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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