DLB Stock Analysis: Dolby Laboratories | NYSE
Specialty Business Services | NYSE, USA | Market Cap: 6.114m USD | 12M Return: -12.3% | US25659T1079 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 54.7M
EPS Trend: 83.1%
Qual. Beats: 0
Rev. Trend: 85.4%
Qual. Beats: -1
Warnings
Tailwinds
Seasonality 11.6 years of data
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.
Dolby Laboratories (NYSE: DLB) designs and licenses audio, imaging, and related software and hardware technologies for the television, broadcast, cinema, and live entertainment industries, generating revenue through a mix of intellectual property licensing, hardware sales (such as cinema servers, processors, and speakers), and recurring services. Its portfolio spans widely adopted codecs (including AAC, HE-AAC, HEVC, and Dolby AC-4) and its flagship consumer-facing technologies Dolby Atmos and Dolby Vision, which are embedded by device makers, streaming platforms, and content creators. The company also operates Dolby Cinemas, a premium large-format theater concept, and Dolby.io, a SaaS platform aimed at real-time, interactive live-event experiences such as sports.
Founded in 1965 and headquartered in San Francisco, California, Dolby has been listed on the NYSE since its 2005 IPO and is classified within the GICS Information Technology sector (Electronic Components sub-industry). Its business model is unusual within hardware-adjacent electronics because the majority of its value comes from licensing proprietary audio and video IP, which is generally a high-margin, scalable revenue stream compared with traditional component manufacturing.
- Streaming Atmos and Vision adoption drives licensing revenue
- Dolby Cinema box office recovery lifts theatrical segment
- TV and soundbar royalty shipments grow consumer electronics revenue
| 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) |
| 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 |
| 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 |
As of August 28, 2026, the stock is trading at USD 62.41 with a total of 1,641,422 shares traded. Over the past week, the price has changed by -2.77%, over one month by +22.44%, over three months by +12.78% and over the past year by -12.25%.
Current recommended Stop Loss: 59.10 (which is 5.3% or 2.1 ATR below the current price).
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 | 79 | 26.6% |
P/E Trailing = 27.7745
P/E Forward = 14.1844
P/S = 4.5142
P/B = 2.3664
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 = 5.49b USD (6.11b + Debt 47.5m - CCE 670.0m)
Interest Coverage Ratio = unknown (Ebit TTM 269.5m / Interest Expense TTM 0.0)
EV/FCF = 15.94x (Enterprise Value 5.49b / FCF TTM 344.5m)
FCF Yield = 6.27% (FCF TTM 344.5m / Enterprise Value 5.49b)
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 = 1.74 (Enterprise Value 5.49b / 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 = 8.18% (E(6.11b)/V(6.16b) * Re(8.24%) + D(47.5m)/V(6.16b) * 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=1.14 | Chg30d=+0.58% | Revisions=+0% | Analysts=3
EPS current Year (2026-09-30): EPS=4.33 | Chg30d=+0.16% | Revisions=+17% | GrowthEPS=+2.0% | GrowthRev=+5.3%
EPS next Year (2027-09-30): EPS=4.60 | Chg30d=-0.14% | Revisions=-17% | GrowthEPS=+6.2% | GrowthRev=+3.3%
[Analyst] Revisions Ratio: +0% (up=4, down=4)