Dolby Laboratories Price To Sales vs. Current Valuation

FUO Stock  EUR 74.00  2.00  2.63%   
Based on Dolby Laboratories' profitability indicators, Dolby Laboratories may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Dolby Laboratories' ability to earn profits and add value for shareholders.
For Dolby Laboratories profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dolby Laboratories to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dolby Laboratories utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dolby Laboratories's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dolby Laboratories over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Dolby Stock please use our How to Invest in Dolby Laboratories guide.
Please note, there is a significant difference between Dolby Laboratories' value and its price as these two are different measures arrived at by different means. Investors typically determine if Dolby Laboratories is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dolby Laboratories' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Dolby Laboratories Current Valuation vs. Price To Sales Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dolby Laboratories's current stock value. Our valuation model uses many indicators to compare Dolby Laboratories value to that of its competitors to determine the firm's financial worth.
Dolby Laboratories is rated # 3 in price to sales category among its peers. It is rated # 2 in current valuation category among its peers reporting about  1,107,853,026  of Current Valuation per Price To Sales. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dolby Laboratories' earnings, one of the primary drivers of an investment's value.

Dolby Current Valuation vs. Price To Sales

Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Dolby Laboratories

P/S

 = 

MV Per Share

Revenue Per Share

 = 
5.34 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Dolby Laboratories

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
5.92 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Dolby Current Valuation vs Competition

Dolby Laboratories is rated # 2 in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Media - Diversified industry is currently estimated at about 25.64 Billion. Dolby Laboratories totals roughly 5.92 Billion in current valuation claiming about 23% of all equities under Media - Diversified industry.

Dolby Laboratories Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dolby Laboratories, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dolby Laboratories will eventually generate negative long term returns. The profitability progress is the general direction of Dolby Laboratories' change in net profit over the period of time. It can combine multiple indicators of Dolby Laboratories, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Dolby Laboratories, Inc. creates audio and imaging technologies that transform entertainment and communications at the cinema, at home, at work, and on mobile devices. Dolby Laboratories, Inc. was founded in 1965 and is headquartered in San Francisco, California. DOLBY LABORATOR operates under Media - Diversified classification in Germany and is traded on Frankfurt Stock Exchange. It employs 2151 people.

Dolby Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Dolby Laboratories. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dolby Laboratories position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dolby Laboratories' important profitability drivers and their relationship over time.

Use Dolby Laboratories in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dolby Laboratories position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dolby Laboratories will appreciate offsetting losses from the drop in the long position's value.

Dolby Laboratories Pair Trading

Dolby Laboratories Pair Trading Analysis

The ability to find closely correlated positions to Dolby Laboratories could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dolby Laboratories when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dolby Laboratories - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dolby Laboratories to buy it.
The correlation of Dolby Laboratories is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dolby Laboratories moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dolby Laboratories moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dolby Laboratories can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Dolby Laboratories position

In addition to having Dolby Laboratories in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Oil And Gas
Oil And Gas Theme
Companies involved in drilling, production, and distribution of oil and gas pipelines. The Oil And Gas theme has 38 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Oil And Gas Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Dolby Stock

When determining whether Dolby Laboratories offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Dolby Laboratories' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Dolby Laboratories Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Dolby Laboratories Stock:
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For more detail on how to invest in Dolby Stock please use our How to Invest in Dolby Laboratories guide.
You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
To fully project Dolby Laboratories' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dolby Laboratories at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Dolby Laboratories' income statement, its balance sheet, and the statement of cash flows.
Potential Dolby Laboratories investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Dolby Laboratories investors may work on each financial statement separately, they are all related. The changes in Dolby Laboratories's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Dolby Laboratories's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.