Dolby Laboratories: Weak Growth, But The Valuation Is Too Cheap Dolby Laboratories is rated Buy due...

Dolby Laboratories: Weak Growth, But The Valuation Is Too Cheap Dolby Laboratories is rated Buy due to its high margins, robust buyback program, and undervalued share price despite weak growth. DLB's 90% gross margin and operating leverage enable EPS growth even with modest revenue increases and stagnant licensing. Share repurchases—authorized up to $427 million—could alone drive EPS to levels supporting a 15x multiple and 20%+ upside.