(DLB) Dolby Laboratories - Overview
Sector: Industrials | Industry: Specialty Business Services | Exchange: NYSE (USA) | Market Cap: 5.175m USD | Total Return: -24% in 12m
Avg Turnover: 47.5M
EPS Trend: 95.8%
Qual. Beats: 0
Rev. Trend: 81.2%
Qual. Beats: 2
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Dolby Laboratories (NYSE: DLB) designs and manufactures audio and imaging solutions for the global entertainment, broadcast, and mobile industries. The company’s core business model relies on licensing proprietary intellectual property, including Dolby Atmos and Dolby Vision, to hardware manufacturers and content creators. Its product portfolio extends into professional cinema hardware, digital cinema servers, and the Dolby.io software-as-a-service platform for real-time engagement.
Operating within the entertainment technology sector, Dolby generates high-margin revenue by embedding its codecs-such as AAC, HEVC, and Dolby AC-4-into consumer electronics like smartphones and televisions. This licensing-heavy approach creates recurring revenue streams that scale with global device adoption rather than individual hardware sales. Investors may find it useful to examine ValueRay for further data on these licensing trends.
The company also manages Dolby Cinema, a premium large-format theater offering, and provides technical services for theatrical and television production. Founded in 1965 and headquartered in San Francisco, Dolby serves a diverse client base consisting of film studios, broadcasters, and post-production facilities.
- Licensing revenue growth depends on Dolby Vision and Atmos adoption in consumer electronics
- Global box office recovery and premium cinema installations drive hardware and royalty income
- Expansion of Dolby.io SaaS platform creates new recurring revenue streams in live streaming
- PC and mobile market shipment fluctuations impact core foundational audio licensing volume
- Integration of immersive technologies into automotive infotainment systems provides a new growth vertical
| Net Income: 243.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -3.01 > 1.0 |
| NWC/Revenue: 68.88% < 20% (prev 70.58%; Δ -1.70% < -1%) |
| CFO/TA 0.10 > 3% & CFO 337.8m > Net Income 243.6m |
| Net Debt (-545.0m) to EBITDA (376.4m): -1.45 < 3 |
| Current Ratio: 2.98 > 1.5 & < 3 |
| Outstanding Shares: last quarter (95.5m) vs 12m ago -2.01% < -2% |
| Gross Margin: 87.44% > 18% (prev 0.89%; Δ 8.65k% > 0.5%) |
| Asset Turnover: 42.14% > 50% (prev 40.88%; Δ 1.25% > 0%) |
| Interest Coverage Ratio: 29.94 > 6 (EBITDA TTM 376.4m / Interest Expense TTM 9.14m) |
| A: 0.29 (Total Current Assets 1.41b - Total Current Liabilities 474.6m) / Total Assets 3.25b |
| B: 0.81 (Retained Earnings 2.63b / Total Assets 3.25b) |
| C: 0.08 (EBIT TTM 273.7m / Avg Total Assets 3.24b) |
| D: 4.21 (Book Value of Equity 2.62b / Total Liabilities 622.4m) |
| Altman-Z'' = 9.52 = AAA |
| DSRI: 0.70 (Receivables 391.3m/544.5m, Revenue 1.36b/1.32b) |
| GMI: 1.02 (GM 87.44% / 88.92%) |
| AQI: 0.99 (AQ_t 0.41 / AQ_t-1 0.41) |
| SGI: 1.03 (Revenue 1.36b / 1.32b) |
| TATA: -0.03 (NI 243.6m - CFO 337.8m) / TA 3.25b) |
| Beneish M = -3.27 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 55.81 with a total of 631,672 shares traded.
Over the past week, the price has changed by +3.24%,
over one month by -11.22%,
over three months by -15.64% and
over the past year by -23.96%.
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
| Analysts Target Price | 78.3 | 40.4% |
P/E Trailing = 21.7103
P/E Forward = 13.0548
P/S = 3.7918
P/B = 1.9534
P/EG = 2.0755
Revenue TTM = 1.36b USD
EBIT TTM = 273.7m USD
EBITDA TTM = 376.4m USD
Long Term Debt = 39.8m USD (estimated: total debt 49.7m - short term 9.87m)
Short Term Debt = 9.87m USD (from shortTermDebt, last quarter)
Debt = 49.7m USD (from shortLongTermDebtTotal, last quarter) (leases 49.7m already included)
Net Debt = -545.0m USD (calculated: Debt 49.7m - CCE 594.7m)
Enterprise Value = 4.63b USD (5.18b + Debt 49.7m - CCE 594.7m)
Interest Coverage Ratio = 29.94 (Ebit TTM 273.7m / Interest Expense TTM 9.14m)
EV/FCF = 15.69x (Enterprise Value 4.63b / FCF TTM 295.1m)
FCF Yield = 6.37% (FCF TTM 295.1m / Enterprise Value 4.63b)
FCF Margin = 21.62% (FCF TTM 295.1m / Revenue TTM 1.36b)
Net Margin = 17.85% (Net Income TTM 243.6m / Revenue TTM 1.36b)
Gross Margin = 87.44% ((Revenue TTM 1.36b - Cost of Revenue TTM 171.5m) / Revenue TTM)
Gross Margin QoQ = 88.69% (prev 87.54%)
Tobins Q-Ratio = 1.42 (Enterprise Value 4.63b / Total Assets 3.25b)
Interest Expense / Debt = 18.40% (Interest Expense 9.14m / Debt 49.7m)
Taxrate = 20.25% (24.2m / 119.7m)
NOPAT = 218.3m (EBIT 273.7m * (1 - 20.25%))
Current Ratio = 2.98 (Total Current Assets 1.41b / Total Current Liabilities 474.6m)
Debt / Equity = 0.02 (Debt 49.7m / totalStockholderEquity, last quarter 2.62b)
Debt / EBITDA = -1.45 (Net Debt -545.0m / EBITDA 376.4m)
Debt / FCF = -1.85 (Net Debt -545.0m / FCF TTM 295.1m)
Total Stockholder Equity = 2.61b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.52% (Net Income 243.6m / Total Assets 3.25b)
RoE = 9.34% (Net Income TTM 243.6m / Total Stockholder Equity 2.61b)
RoCE = 10.33% (EBIT 273.7m / Capital Employed (Equity 2.61b + L.T.Debt 39.8m))
RoIC = 9.97% (NOPAT 218.3m / Invested Capital 2.19b)
WACC = 7.98% (E(5.18b)/V(5.23b) * Re(7.92%) + D(49.7m)/V(5.23b) * Rd(18.40%) * (1-Tc(0.20)))
Discount Rate = 7.92% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -46.67 | Cagr: -0.88%
[DCF] Terminal Value 73.10% ; FCFF base≈333.2m ; Y1≈292.2m ; Y5≈236.1m
[DCF] Fair Price = 71.84 (EV 3.79b - Net Debt -545.0m = Equity 4.34b / Shares 60.3m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 95.85 | EPS CAGR: 8.83% | SUE: 0.40 | # QB: 0
Revenue Correlation: 81.23 | Revenue CAGR: 2.47% | SUE: 1.57 | # QB: 2
EPS current Quarter (2026-06-30): EPS=0.67 | Chg30d=-32.10% | Revisions=-43% | Analysts=3
EPS current Year (2026-09-30): EPS=4.31 | Chg30d=-0.99% | Revisions=-43% | GrowthEPS=+1.7% | GrowthRev=+4.2%
EPS next Year (2027-09-30): EPS=4.60 | Chg30d=-0.65% | Revisions=-33% | GrowthEPS=+6.8% | GrowthRev=+4.1%
[Analyst] Revisions Ratio: -43%