Dolby Laboratories, Inc. (NYSE:DLB)

I just don't see all those people who are consuming audio through ear buds caring that much about the quality of the audio as long as it doesn't suck. It isn't like in the good old days, when having audio equipment by Teac and Pioneer gave you bragging rights, and people had speakers the size of Great Danes in their dorm rooms.

I think they will adapt to the cell phone market

A very strong balance sheet with a pretty good income statement. Their technologies are everywhere, and presumably they will keep trying to innovate and keep a presence in as many places as possible. May not be terrific for growth, but should stay strong and have no problems maintaining.

Intrinsic value estimate > $50

ROE consistently high

No debt

Moat: strong brand name and many patents

An amazing current ratio of > 6

Stable and high net profit margin of around 30%

Steadily increasing book value

Lowest P/E ratio in 8 years!

Nowhere to go but up I'd say!

Stock appears to be extremely undervalued.

While Dolby has a great brand, a strong balance sheet, and a history of cash generation, I'm worried about the decline of optical device royalty revenue. DVD and Blu-ray device sales are slowing, and I don't think growth in mobile revenue will offset the loss.

See my pitch at http://beta.fool.com/symie5/2012/12/12/dolby-cheap-it-seems/18354/

read an article about DLB on thegrahamdisciple.com; also own it personally, found on MFI screens and researched the company.

The movie exhibition industry is fiercely competitive, and any small advantage will be taken. This will provide strong demand for Dolby Atmos when it is ready for sale. Additionally, this company has stockpiled serious cash for share buybacks, acquisitions, and massive spending in the R&D department. It is ready to unlock that hidden value in spite of its recent depressed price.

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.

I have owned this stock for a year and a half and it is a total dog.

A solid company with a good patent portfolio that has taken a hit.

Bought in real life today at 30.84. It has been on my watch list for awhile and the numbers are still solid even though they have underperformed over the past 5 years. Longer term the mean which they will revert to is much higher and I think the company is better suited to the less volatile times which are ahead of us (in my opinion of course). How is that for a broad stroke?

Low P/E, decent earnings forecasts and high ROIC

Dolby seems to be suffering from some of the recent anxieties about entertainment. But they're not IMAX - you can go to a not-IMAX theatre. Dolby just about own sound systems. Buying opportunity.

BIG overreaction here. Dolby is now trading for under 10x FCF (even less if you net out the cash), while pegged for 14% long-term growth. If that growth number holds up (that's a worry), the stock is undervalued by half.

I'm with EnigmaDude. Overreaction.

Stock downgraded dropping the share price even though they have solid fundamentals, no debt, and beat earnings estimates for the last 3 quarters.

Magic Formula

Dolby's business model allows them to convert revenue to net profits very efficiency. This in turn creates cash flow to fund their business properly. Also, their total current assets can pay for their total liabilities (with no long term debt). This is not the norm with S&P companies, which is why they will outperform the S&P 5+ years.