Added to YB: 2026-07-14
Pitch date: 2026-07-12
DLB [bearish]
Dolby Laboratories, Inc.
+1.38%
current return
Author Info
No bio for this author
Company Info
Dolby Laboratories, Inc. engages in the design and manufacture of audio, imaging, accessibility, and other hardware and software solutions for television, broadcast, and live entertainment industries in the United States and internationally.
Market Cap
$4.7B
Pitch Price
$50.05
Price Target
25.00 (-50%)
Dividend
2.89%
EV/EBITDA
10.53
P/E
19.79
EV/Sales
3.06
Sector
Software
Category
N/A
Winning with the Losers - Dolby Laboratories, Inc.
DLB (short): Royalty co w/ ~90% GM, 30% EBITDA margin, but audio codec patents expiring in 5yrs; no usage-based upside, AI threatens compression tech. Family dual-class control (85% votes) blocks buyout; no debt levers. Multiple falling, ROE nearing 8.7% cost of capital. Targets ~15% annual decline to steady-state value, ~11.75% short IRR net of 3.25% borrow/div cost over 5yrs.
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