DLB Stock Analysis: Dolby Laboratories | NYSE

Audio Codecs, Video Codecs, Cinema Systems, Immersive Sound

Total Rating 42

Safety 90

Buy Signal -0.67

Specialty Business Services
Industry Rotation: +8.0

Market Cap: 5.47B
Avg Turnover: 49.0M

Risk 3d forecast

Volatility23.9%

VaR 5^th Pctl3.83%

VaR vs Median-2.40%

Reward TTM

Sharpe Ratio-0.48

Rel. Str. IBD48

Rel. Str. Peer Group14.7

Character TTM

Beta0.643

Beta Downside0.607

Hurst Exponent0.561

Drawdowns 3y

Max DD43.20%

CAGR/Max DD-0.21

CAGR/Mean DD-0.54

EPS (Earnings per Share)

EPS CAGR: 6.96%
EPS Trend: 83.1%

Last SUE: 0.37
Qual. Beats: 0

Revenue

Rev. CAGR: 2.72%
Rev. Trend: 85.4%

Last SUE: -1.04
Qual. Beats: -1

Warnings

Choppy

Below Avwap Earnings

Below Sma 200d

Tailwinds

No distinct edge detected

Seasonality 11.7 years of data

Jan +2.2% 28

Feb +0.4% 5

Mar -0.5% 5

Apr -0.1% 7

May -1.0% 18

Jun -1.1% 22

Jul +3.8% 66

Aug -2.1% 31

Sep +0.4% 0

Oct -1.2% 15

Nov +5.3% 46

Dec -1.8% 27

How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.

Description: DLB Dolby Laboratories

Dolby Laboratories (NYSE: DLB) is a U.S.-based technology company founded in 1965 and headquartered in San Francisco that designs, manufactures, and licenses audio, imaging, and accessibility hardware and software for the television, broadcast, cinema, and live entertainment industries worldwide. Its core offerings include widely licensed audio and video codec technologies such as AAC, HE-AAC, Dolby Atmos, Dolby Vision, Dolby AC-4, and HEVC, which are embedded in consumer devices, streaming services, and broadcast television.

The company operates a hybrid business model that combines royalty-based licensing of its proprietary codecs with hardware sales (digital cinema servers, processors, amplifiers, loudspeakers) and a growing SaaS offering through Dolby.io for real-time immersive experiences in live events and sports. It also owns and operates Dolby Cinemas, a premium large-format cinema concept that bundles its proprietary audio and imaging technologies with a branded theater design.

Dolby serves a broad customer base including film studios, content creators, post-production facilities, and broadcasters. Listed in the Information Technology sector under the Electronic Components sub-industry, the company has been publicly traded since its February 2005 IPO and is classified as a mid-cap stock.

Headlines to Watch Out For

Vision and Atmos licensing growth drives recurring royalty revenue
Box office recovery supports Dolby Cinema and server segment revenue
Dolby.io SaaS expansion diversifies beyond traditional licensing model

Piotroski VR-10 (Strict) 5.0

Net Income: 226.2m TTM > 0 and > 6% of Revenue
FCF/TA: 0.11 > 0.02 and ΔFCF/TA -2.79 > 1.0
NWC/Revenue: 67.17% < 20% (prev 70.48%; Δ -3.31% < -1%)
CFO/TA 0.14 > 3% & CFO 437.6m > Net Income 226.2m
Net Debt (-622.6m) to EBITDA (372.8m): -1.67 < 3
Current Ratio: 3.19 > 1.5 & < 3
Outstanding Shares: last quarter (94.5m) vs 12m ago -2.46% < -2%
Gross Margin: 87.61% > 18% (prev 88.52%; Δ -0.91% > 0.5%)
Asset Turnover: 42.64% > 50% (prev 42.14%; Δ 0.50% > 0%)
Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM)

Altman Z'' 9.96

A: 0.29 (Total Current Assets 1.33b - Total Current Liabilities 416.3m) / Total Assets 3.16b
B: 0.82 (Retained Earnings 2.60b / Total Assets 3.16b)
C: 0.08 (EBIT TTM 269.5m / Avg Total Assets 3.18b)
D: 4.58 (Book Value of Equity 2.58b / Total Liabilities 563.9m)
Altman-Z'' = 9.96 = AAA

Beneish M -3.04

DSRI: 0.97 (Receivables 492.0m/502.0m, Revenue 1.35b/1.35b)
GMI: 1.01 (GM 88.52% / 87.61%)
AQI: 1.00 (AQ_t 0.42 / AQ_t-1 0.42)
SGI: 1.01 (Revenue 1.35b / 1.35b)
TATA: -0.07 (NI 226.2m - CFO 437.6m) / TA 3.16b)
Beneish M = -3.04 (Cap -4..+1) = AA

What is the price of DLB shares?

As of October 14, 2026, the stock is trading at USD 58.36 with a total of 504,088 shares traded. Over the past week, the price has changed by -0.17%, over one month by -5.73%, over three months by +18.92% and over the past year by -13.14%.

Current recommended Stop Loss: 55.70 (which is 4.6% or 1.8 ATR below the current price).

Is DLB a buy, sell or hold?

Dolby Laboratories has received a consensus analysts rating of 4.25. Therefore, it is recommended to buy DLB.

StrongBuy: 2
Buy: 1
Hold: 1
Sell: 0
StrongSell: 0

What are the forecasts/targets for the DLB price?

Analysts Target Price	79	35.4%

Dolby Laboratories (DLB) - Fundamental Data Overview as of 09 October 2026

Market Cap USD = 5.47b (5.47b USD * 1.0 USD.USD)
P/E Trailing = 24.8298
P/E Forward = 12.6103
P/S = 4.0356
P/B = 2.1039
P/EG = 2.0755
Revenue TTM = 1.35b USD
EBIT TTM = 269.5m USD
EBITDA TTM = 372.8m USD
Long Term Debt = 37.6m USD (estimated: total debt 47.5m - short term 9.86m)
Short Term Debt = 9.86m USD (from shortTermDebt, last quarter)
Debt = 47.5m USD (from shortLongTermDebtTotal, last quarter) (leases 47.5m already included)
Net Debt = -622.6m USD (calculated: Debt 47.5m - CCE 670.0m)
Enterprise Value = 4.84b USD (5.47b + Debt 47.5m - CCE 670.0m)
Interest Coverage Ratio = unknown (Ebit TTM 269.5m / Interest Expense TTM 0.0)
EV/FCF = 14.06x (Enterprise Value 4.84b / FCF TTM 344.5m)
FCF Yield = 7.11% (FCF TTM 344.5m / Enterprise Value 4.84b)
FCF Margin = 25.44% (FCF TTM 344.5m / Revenue TTM 1.35b)
Net Margin = 16.70% (Net Income TTM 226.2m / Revenue TTM 1.35b)
Gross Margin = 87.61% ((Revenue TTM 1.35b - Cost of Revenue TTM 167.8m) / Revenue TTM)
Gross Margin QoQ = 86.78% (prev 88.69%)
Tobins Q-Ratio = 1.53 (Enterprise Value 4.84b / Total Assets 3.16b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 47.5m)
Taxrate = 17.62% (48.8m / 276.8m)
NOPAT = 222.0m (EBIT 269.5m * (1 - 17.62%))
Current Ratio = 3.19 (Total Current Assets 1.33b / Total Current Liabilities 416.3m)
Debt / Equity = 0.02 (Debt 47.5m / totalStockholderEquity, last quarter 2.58b)
Debt / EBITDA = -1.67 (Net Debt -622.6m / EBITDA 372.8m)
Debt / FCF = -1.81 (Net Debt -622.6m / FCF TTM 344.5m)
Total Stockholder Equity = 2.60b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.12% (Net Income 226.2m / Total Assets 3.16b)
RoE = 8.68% (Net Income TTM 226.2m / Total Stockholder Equity 2.60b)
RoCE = 10.20% (EBIT 269.5m / Capital Employed (Equity 2.60b + L.T.Debt 37.6m))
RoIC = 8.28% (NOPAT 222.0m / Invested Capital 2.68b)
WACC = 8.17% (E(5.47b)/V(5.51b) * Re(8.24%) + D(47.5m)/V(5.51b) * Rd(0.0%) * (1-Tc(0.18)))
Discount Rate = 8.24% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -69.28 | Cagr: -1.08%
[DCF] Terminal Value 73.10% ; FCFF base≈381.9m ; Y1≈334.9m ; Y5≈270.6m
[DCF] Fair Price = 83.58 (EV 4.34b - Net Debt -622.6m = Equity 4.97b / Shares 59.4m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 83.11 | EPS CAGR: 6.96% | SUE: 0.37 | # QB: 0
Revenue Correlation: 85.45 | Revenue CAGR: 2.72% | SUE: -1.04 | # QB: -1
EPS current Quarter (2026-12-31): EPS=1.12 | Chg30d=-1.82% | Revisions=+0% | Analysts=4
EPS current Year (2026-09-30): EPS=4.32 | Chg30d=-0.10% | Revisions=+17% | GrowthEPS=+1.9% | GrowthRev=+5.7%
EPS next Year (2027-09-30): EPS=4.58 | Chg30d=-0.36% | Revisions=-17% | GrowthEPS=+6.0% | GrowthRev=+2.9%
[Analyst] Revisions Ratio: +0% (up=4, down=4)