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Should I Buy NYSE:DLB Stock? (8% Forecasted Return) | DLB Dolby Laboratories Stock Forecast



Our view of a company's financial policy is an important input when assessing its current and future liquidity position. For instance, we assess whether a company has historically had a higher risk appetite and an aggressive acquisition strategy that has strained its liquidity position, or whether it has taken actions to preserve liquidity in past downturns.When evaluating uses of liquidity, we include all debt maturities over the liquidity horizon that are either recourse to the company, or nonrecourse that we believe the company will support even in times of stress. In cases where the debt includes a put option held by debtholders, we will consider the date of the put option the effective debt maturity--i.e., we will assume the debt will need to be repaid/refinanced on the day the put can be first exercised. We estimate DLB Dolby Laboratories stock forecast parameters by: Anomaly with Multiple Regression because of core capital, as measured by adjusted common equity, comprises more than 90% of the TAC, or double leverage is less than 90% (8% Forecasted Return)

NYSE:DLB Stock Forecast (Buy or Sell) as of 23 Jun 2022 for (n+6 month)

Stock: DLB Dolby Laboratories

Time series to forecast n: 23 Jun 2022 for (n+6 month)

x axis:Likelihood %
y axis:Potential Impact %
z axis:Color (yellow to green) Technical Analysis %

Stock Forecast Criteria and Models for DLB Dolby Laboratories

  • For unlisted equities, we add 10% (equivalent to a 125% risk weight add-on) to the charge we apply for listed equity investments
  • The instrument includes a conversion price floor equal to or higher than the issuer's share price at the time of issue (adjusted for any subsequent share issuances)
  • We establish a floor RAC charge of zero for each equities group to ensure that unrealized gains cannot lower the risk weight below zero.
  • We evaluate external credit support (for example, from a foreign-domiciled entity), such as implicit parent support or a guarantee, under the relevant criteria, and we could rate an entity above the maximum rating differential specified by this criteria.
  • Assets under management:Asset managers are exposed not only to legal, reputational, and operational risks, but also to credit risk within their cash and money market funds. In addition to the risk weight based on revenues by business line, we apply a risk weight of 6.25% to cash and money market AUM. This is because, in our view, a number of asset managers may be led to support their monetary funds during a crisis to prevent a loss in value for investors.
  • Does not contain a step-up clause, or an alternative incentive to redeem, associated with a call date
  • Does not contain a step-up clause, or an alternative incentive to redeem, associated with a call date

Assumptions Underlying The Forecast Model for DLB Dolby Laboratories

We believe that when a company is viewed as being on the cusp between two liquidity descriptors and has higher-than-average cash plus inventory/unadjusted debt compared with similarly constituted peers, that helps support the better liquidity assessment. However, in the case of a nonresidential developer, given that its inventory is typically less liquid (and the greater potential for inventory to suffer value erosion in a downturn), we do not consider this measure as pertinent.

Frequently Asked QuestionsQ: Is DLB Dolby Laboratories stock buy or sell?
A: Our view of a company's financial policy is an important input when assessing its current and future liquidity position. For instance, we assess whether a company has historically had a higher risk appetite and an aggressive acquisition strategy that has strained its liquidity position, or whether it has taken actions to preserve liquidity in past downturns.
Q: Is DLB Dolby Laboratories stock expected to go up?
A: When evaluating uses of liquidity, we include all debt maturities over the liquidity horizon that are either recourse to the company, or nonrecourse that we believe the company will support even in times of stress. In cases where the debt includes a put option held by debtholders, we will consider the date of the put option the effective debt maturity--i.e., we will assume the debt will need to be repaid/refinanced on the day the put can be first exercised.
Q: What is the forecast for DLB Dolby Laboratories ?
A: We believe that when a company is viewed as being on the cusp between two liquidity descriptors and has higher-than-average cash plus inventory/unadjusted debt compared with similarly constituted peers, that helps support the better liquidity assessment. However, in the case of a nonresidential developer, given that its inventory is typically less liquid (and the greater potential for inventory to suffer value erosion in a downturn), we do not consider this measure as pertinent.
Q: What is the consensus rating of DLB Dolby Laboratories ?
A: The consensus rating for DLB Dolby Laboratories is 70.
Q: What are the risks of investing DLB Dolby Laboratories ?
A: We use risk analysis for DLB Dolby Laboratories because of core capital, as measured by adjusted common equity, comprises more than 90% of the TAC, or double leverage is less than 90%


DLB Dolby Laboratories

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