Discounted Cash Flow (DCF) Analysis Unlevered

Dolby Laboratories, Inc. (DLB)

$83.36

+0.75 (+0.91%)

All numbers are in Millions, Currency in USD

Stock DCF: 44.30 | 83.36 | overvalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,171.92	1,241.62	1,161.79	1,281.26	1,253.79	1,277.79	1,302.25	1,327.18	1,352.59	1,378.48
Revenue (%)
EBITDA	393.79	367.25	330.52	460.15	319.47	391.07	398.55	406.18	413.96	421.88
EBITDA (%)
EBIT	312.51	282.12	239.65	347.39	215.86	292.22	297.81	303.52	309.33	315.25
EBIT (%)
Depreciation	81.28	85.12	90.88	112.76	103.61	98.85	100.74	102.67	104.63	106.63
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	1,096.20	916.36	1,118.82	1,264.22	809.34	1,090.89	1,111.77	1,133.06	1,154.75	1,176.85
Total Cash (%)
Account Receivables	139.59	385.55	341.70	414.92	419.69	353.26	360.03	366.92	373.94	381.10
Account Receivables (%)
Inventories	26.21	32.33	25.55	10.97	23.55	24.98	25.45	25.94	26.44	26.94
Inventories (%)
Accounts Payable	21.92	15.21	12.62	17.78	14.17	17.12	17.45	17.78	18.12	18.47
Accounts Payable (%)
Capital Expenditure	-85.36	-113.54	-68.99	-54.45	-59.46	-80.14	-81.67	-83.24	-84.83	-86.45
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 83.36
Beta	1.005
Diluted Shares Outstanding	101.98
Cost of Debt
Tax Rate	14.49
After-tax Cost of Debt	0.66%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.348
Total Debt	50.94
Total Equity	8,501.30
Total Capital	8,552.24
Debt Weighting	0.60
Equity Weighting	99.40
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,171.92	1,241.62	1,161.79	1,281.26	1,253.79	1,277.79	1,302.25	1,327.18	1,352.59	1,378.48
EBITDA	393.79	367.25	330.52	460.15	319.47	391.07	398.55	406.18	413.96	421.88
EBIT	312.51	282.12	239.65	347.39	215.86	292.22	297.81	303.52	309.33	315.25
Tax Rate	60.93%	9.62%	3.48%	12.49%	14.49%	20.20%	20.20%	20.20%	20.20%	20.20%
EBIAT	122.10	254.98	231.30	304	184.59	233.19	237.65	242.20	246.83	251.56
Depreciation	81.28	85.12	90.88	112.76	103.61	98.85	100.74	102.67	104.63	106.63
Accounts Receivable	-	-245.96	43.85	-73.23	-4.76	66.42	-6.76	-6.89	-7.02	-7.16
Inventories	-	-6.13	6.78	14.59	-12.58	-1.43	-0.48	-0.49	-0.50	-0.51
Accounts Payable	-	-6.71	-2.60	5.16	-3.61	2.95	0.33	0.33	0.34	0.35
Capital Expenditure	-85.36	-113.54	-68.99	-54.45	-59.46	-80.14	-81.67	-83.24	-84.83	-86.45
UFCF	118.03	-32.23	301.22	308.82	207.79	319.84	249.80	254.58	259.46	264.42
WACC
PV UFCF						295.33	212.98	200.42	188.60	177.48
SUM PV UFCF										1,074.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.30
Free cash flow (t + 1)	269.71
Terminal Value	4,281.15
Present Value of Terminal Value	2,873.55

Intrinsic Value

Enterprise Value	3,948.36
Net Debt	-569.18
Equity Value	4,517.55
Shares Outstanding	101.98
Equity Value Per Share	44.30