(DLB) Dolby Laboratories - Overview
Stock: Audio, Video, Software, Hardware, Licensing
| Risk 5d forecast | |
|---|---|
| Volatility | 23.0% |
| Relative Tail Risk | -9.43% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.84 |
| Alpha | -34.07 |
| Character TTM | |
|---|---|
| Beta | 0.796 |
| Beta Downside | 0.893 |
| Drawdowns 3y | |
|---|---|
| Max DD | 29.81% |
| CAGR/Max DD | -0.21 |
EPS (Earnings per Share)
Revenue
Description: DLB Dolby Laboratories March 03, 2026
Dolby Laboratories designs and manufactures audio, imaging, and hardware solutions for the cinema, broadcast, and home entertainment industries. The company’s core business revolves around developing and licensing proprietary technologies, such as Dolby Atmos for immersive audio and Dolby Vision for high-dynamic-range imaging, to content creators and device manufacturers. In addition to licensing, Dolby offers hardware products like digital cinema servers and amplifiers, as well as Dolby.io, a SaaS platform designed for real-time interactive streaming experiences.
The company operates a high-margin business model primarily driven by intellectual property licensing, collecting royalties from original equipment manufacturers (OEMs) that integrate codecs like AAC, AVC, and HEVC into consumer electronics such as smartphones and televisions. This strategy allows Dolby to scale its revenue alongside global content consumption trends without the heavy capital expenditure typically associated with mass hardware production. For those investigating Dolbys specific royalty streams and valuation metrics, ValueRay provides useful research tools.
Beyond home entertainment, the company partners with exhibitors to deploy Dolby Cinema, a premium large-format theater offering that combines proprietary design with advanced audiovisual standards. Dolby also provides technical services to support theatrical and television production, serving a client base that includes film studios, broadcasters, and post-production facilities. Founded in 1965 and headquartered in San Francisco, Dolby Laboratories remains a standard-setter for digital audio and video compression.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income: 240.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.12 > 0.02 and ΔFCF/TA -0.61 > 1.0 |
| NWC/Revenue: 72.04% < 20% (prev 64.17%; Δ 7.87% < -1%) |
| CFO/TA 0.13 > 3% & CFO 420.2m > Net Income 240.5m |
| Net Debt (-603.2m) to EBITDA (379.1m): -1.59 < 3 |
| Current Ratio: 3.17 > 1.5 & < 3 |
| Outstanding Shares: last quarter (96.5m) vs 12m ago -0.65% < -2% |
| Gross Margin: 87.86% > 18% (prev 0.89%; Δ 8697 % > 0.5%) |
| Asset Turnover: 42.16% > 50% (prev 41.64%; Δ 0.53% > 0%) |
| Interest Coverage Ratio: 67.72 > 6 (EBITDA TTM 379.1m / Interest Expense TTM 4.12m) |
Altman Z'' 9.85
| A: 0.30 (Total Current Assets 1.41b - Total Current Liabilities 443.5m) / Total Assets 3.19b |
| B: 0.82 (Retained Earnings 2.60b / Total Assets 3.19b) |
| C: 0.09 (EBIT TTM 278.9m / Avg Total Assets 3.18b) |
| D: 4.40 (Book Value of Equity 2.59b / Total Liabilities 589.3m) |
| Altman-Z'' Score: 9.85 = AAA |
Beneish M -3.10
| DSRI: 1.00 (Receivables 571.4m/560.2m, Revenue 1.34b/1.32b) |
| GMI: 1.01 (GM 87.86% / 88.65%) |
| AQI: 0.93 (AQ_t 0.40 / AQ_t-1 0.43) |
| SGI: 1.02 (Revenue 1.34b / 1.32b) |
| TATA: -0.06 (NI 240.5m - CFO 420.2m) / TA 3.19b) |
| Beneish M-Score: -3.10 (Cap -4..+1) = AA |
What is the price of DLB shares?
Over the past week, the price has changed by +0.78%, over one month by +1.01%, over three months by -1.42% and over the past year by -18.07%.
Is DLB a buy, sell or hold?
- StrongBuy: 2
- Buy: 2
- Hold: 0
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the DLB price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 81 | 25% |
| Analysts Target Price | 81 | 25% |
DLB Fundamental Data Overview March 05, 2026
P/E Forward = 14.0056
P/S = 4.6199
P/B = 2.3987
P/EG = 2.0755
Revenue TTM = 1.34b USD
EBIT TTM = 278.9m USD
EBITDA TTM = 379.1m USD
Long Term Debt = 40.6m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 10.3m USD (from shortTermDebt, last quarter)
Debt = 40.6m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -603.2m USD (from netDebt column, last quarter)
Enterprise Value = 5.58b USD (6.19b + Debt 40.6m - CCE 643.8m)
Interest Coverage Ratio = 67.72 (Ebit TTM 278.9m / Interest Expense TTM 4.12m)
EV/FCF = 14.70x (Enterprise Value 5.58b / FCF TTM 379.7m)
FCF Yield = 6.80% (FCF TTM 379.7m / Enterprise Value 5.58b)
FCF Margin = 28.36% (FCF TTM 379.7m / Revenue TTM 1.34b)
Net Margin = 17.97% (Net Income TTM 240.5m / Revenue TTM 1.34b)
Gross Margin = 87.86% ((Revenue TTM 1.34b - Cost of Revenue TTM 162.6m) / Revenue TTM)
Gross Margin QoQ = 87.54% (prev 87.13%)
Tobins Q-Ratio = 1.75 (Enterprise Value 5.58b / Total Assets 3.19b)
Interest Expense / Debt = 10.13% (Interest Expense 4.12m / Debt 40.6m)
Taxrate = 25.03% (17.9m / 71.6m)
NOPAT = 209.1m (EBIT 278.9m * (1 - 25.03%))
Current Ratio = 3.17 (Total Current Assets 1.41b / Total Current Liabilities 443.5m)
Debt / Equity = 0.02 (Debt 40.6m / totalStockholderEquity, last quarter 2.59b)
Debt / EBITDA = -1.59 (Net Debt -603.2m / EBITDA 379.1m)
Debt / FCF = -1.59 (Net Debt -603.2m / FCF TTM 379.7m)
Total Stockholder Equity = 2.60b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.57% (Net Income 240.5m / Total Assets 3.19b)
RoE = 9.26% (Net Income TTM 240.5m / Total Stockholder Equity 2.60b)
RoCE = 10.57% (EBIT 278.9m / Capital Employed (Equity 2.60b + L.T.Debt 40.6m))
RoIC = 8.05% (NOPAT 209.1m / Invested Capital 2.60b)
WACC = 8.84% (E(6.19b)/V(6.23b) * Re(8.85%) + D(40.6m)/V(6.23b) * Rd(10.13%) * (1-Tc(0.25)))
Discount Rate = 8.85% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.47%
[DCF] Terminal Value 75.90% ; FCFF base≈385.8m ; Y1≈406.6m ; Y5≈478.1m
[DCF] Fair Price = 127.2 (EV 7.14b - Net Debt -603.2m = Equity 7.74b / Shares 60.9m; r=8.84% [WACC]; 5y FCF grow 5.89% → 2.90% )
EPS Correlation: 34.25 | EPS CAGR: 3.85% | SUE: 2.48 | # QB: 7
Revenue Correlation: 24.78 | Revenue CAGR: 0.97% | SUE: 0.85 | # QB: 1
EPS next Quarter (2026-06-30): EPS=0.99 | Chg7d=+0.032 | Chg30d=+0.043 | Revisions Net=-2 | Analysts=3
EPS current Year (2026-09-30): EPS=4.35 | Chg7d=-0.002 | Chg30d=+0.093 | Revisions Net=+3 | Growth EPS=+2.7% | Growth Revenue=+5.2%
EPS next Year (2027-09-30): EPS=4.63 | Chg7d=+0.058 | Chg30d=+0.033 | Revisions Net=+1 | Growth EPS=+6.4% | Growth Revenue=+3.8%
[Analyst] Revisions Ratio: -1.00 (0 Up / 2 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 5.1% (Discount Rate 8.8% - Earnings Yield 3.8%)
[Growth] Growth Spread = +4.1% (Analyst 9.2% - Implied 5.1%)