(DLB) Dolby Laboratories - NYSE
Sector: Industrials | Industry: Specialty Business Services | Exchange: NYSE (USA) | Market Cap: 4.846m USD | Total Return: -26.6% in 12m
Avg Turnover: 43.8M
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 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: 243.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -4.15 > 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 (380.9m): -1.43 < 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 88.92%; Δ -1.48% > 0.5%) |
| Asset Turnover: 42.14% > 50% (prev 40.88%; Δ 1.25% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| 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: 0.09 (EBIT TTM 278.3m / Avg Total Assets 3.24b) |
| D: 4.21 (Book Value of Equity 2.62b / Total Liabilities 622.4m) |
| Altman-Z'' = 9.53 = AAA |
| DSRI: 1.12 (Receivables 630.2m/544.5m, Revenue 1.36b/1.32b) |
| GMI: 1.02 (GM 88.92% / 87.44%) |
| 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 = -2.90 (Cap -4..+1) = A |
As of June 23, 2026, the stock is trading at USD 52.42 with a total of 1,260,752 shares traded. Over the past week, the price has changed by -0.19%, over one month by -4.19%, over three months by -11.58% and over the past year by -26.60%.
Current recommended Stop Loss: 50.40 (which is 3.9% or 1.3 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 | 78.3 | 49.4% |
P/E Trailing = 20.3294
P/E Forward = 11.1111
P/S = 3.5506
P/B = 1.8511
P/EG = 2.0755
Revenue TTM = 1.36b USD
EBIT TTM = 278.3m USD
EBITDA TTM = 380.9m 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 = 4.30b USD (4.85b + Debt 49.7m - CCE 594.7m)
Interest Coverage Ratio = unknown (Ebit TTM 278.3m / Interest Expense TTM 0.0)
EV/FCF = 16.67x (Enterprise Value 4.30b / FCF TTM 258.1m)
FCF Yield = 6.00% (FCF TTM 258.1m / Enterprise Value 4.30b)
FCF Margin = 18.91% (FCF TTM 258.1m / 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 = 1.32 (Enterprise Value 4.30b / Total Assets 3.25b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 49.7m)
Taxrate = 14.96% (43.2m / 288.5m)
NOPAT = 236.7m (EBIT 278.3m * (1 - 14.96%))
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 = -1.43 (Net Debt -545.0m / EBITDA 380.9m)
Debt / FCF = -2.11 (Net Debt -545.0m / FCF TTM 258.1m)
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 = 10.50% (EBIT 278.3m / Capital Employed (Equity 2.61b + L.T.Debt 39.8m))
RoIC = 8.71% (NOPAT 236.7m / Invested Capital 2.72b)
WACC = 7.84% (E(4.85b)/V(4.90b) * Re(7.92%) + D(49.7m)/V(4.90b) * Rd(0.0%) * (1-Tc(0.15)))
Discount Rate = 7.92% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -46.67 | Cagr: -0.88%
[DCF] Terminal Value 73.10% ; FCFF base≈311.0m ; Y1≈272.8m ; Y5≈220.4m
[DCF] Fair Price = 67.65 (EV 3.54b - Net Debt -545.0m = Equity 4.08b / 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=+0.00% | Revisions=-43% | Analysts=2
EPS current Year (2026-09-30): EPS=4.32 | Chg30d=+0.23% | Revisions=-43% | GrowthEPS=+1.9% | GrowthRev=+4.2%
EPS next Year (2027-09-30): EPS=4.60 | Chg30d=+0.00% | Revisions=-33% | GrowthEPS=+6.6% | GrowthRev=+4.1%
[Analyst] Revisions Ratio: -43%