Dolby Laboratories (DLB) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Dolby Laboratories stock $75.55, price $64.83, upside +16.5%, quality 78 out of 100. Rating: undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range $48.23 – $93.94 · fair‑value band $56.66 – $93.56 · the $64.83 price screens below the $75.55 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Dolby Laboratories, Inc. engages in the design and manufacture of audio, imaging, accessibility, and other hardware and software solutions for television, broadcast, and live entertainment industries in the United States and internationally.
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The company develops and licenses its audio technologies, such as AAC, HE-AAC, and extended HE-AAC, a digital audio codec solution; AVC, a digital video codec used in STBs, mobile devices, cameras, and broadcast television services and other products; and Dolby Atmos and Dolby Vision include encoding technologies that artists use to create more compelling and immersive audio and video experiences.
It also provides DD+, an advanced surround sound audio codec technology; Dolby AC-4, an audio codec that uses cutting edge compression; and HEVC, a digital video codec that compresses video.
In addition, the company offers Dolby Cinemas, a premium large format cinemas that deliver a Dolby branded premium cinema offering with Dolby Vision, Dolby Atmos, and a Dolby theater design; Dolby.io, a SaaS product of immersive, interactive, and social experiences with real-time engagement for live events, especially sports; and digital cinema servers, cinema processors, amplifiers, loudspeakers, and audio and imaging hardware and software products for the cinema, television, broadcast, communication, and entertainment industries.
Further, it provides various services to support theatrical and television production for cinema exhibition, broadcast, and home entertainment. It serves film studios, content creators, post-production facilities, and broadcasters.
Dolby Laboratories, Inc. was founded in 1965 and is headquartered in San Francisco, California.
Stock analysis
Dolby Laboratories (DLB) currently trades at $64.83, while our model-based Fair Value estimate is $75.55, implying the stock looks roughly 14% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $81.89 per share, and 10 of the 26 models we run sit above the $64.83 price.
Bear case: the Asset-Based group reads lowest at $8.28, and 16 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: $56.66 (bear) to $93.56 (bull), the price of $64.83 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 78/100 (high quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Dolby Laboratories reported revenue of $1.3B in FY2025 versus $1.3B in FY2021, a compound +1.3%/yr. Reported net income was $255M in FY2025, compounding −4.8%/yr from FY2021.
Key figures
Market cap $6.1B Mid · P/E ratio 26.5 · P/S ratio 4.52 · EPS (TTM) $2.36 · Dividend yield 2.2% · Net margin 16.7% · Return on equity 8.8% · Return on assets (EBIT) 8.6% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 65 out of 100 (medium confidence).
What moves the price
The share trades about 5% below its 52-week high and 34% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −15% fair-value upside, at 17%, DLB screens cheaper than that median.
Fair Value models
Bear$56.66Fair Value $75.55Bull$93.56
Price $64.83 · Upside +16.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($0.9200 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 5 officers or directors sold shares worth $3.7M and none bought.
SaleJohn D CoulingSVP, Entertainment9× since Nov 20, 2025: 70,792 shares, avg. $60.30$4.3MOct 1, 2026
SaleRyan NicholsonVP, CAO and Corp. Controller4× since Feb 13, 2026: 5,555 shares, avg. $64.72$359,537Aug 25, 2026
SaleShriram RevankarSVP, Advanced Technology Group4× since Nov 21, 2025: 12,000 shares, avg. $62.33$747,900Aug 14, 202610b5-1 plan
SaleTodd PendletonSVP, Chief Marketing Officer11,876 shares at $54.55$647,836May 22, 2026
SaleRobert J ParkSVP & Chief Financial Officer4,895 shares at $56.68$277,440May 12, 202610b5-1 plan
SaleEmily RollinsDirector1,000 shares at $60.08$60,080Apr 1, 202610b5-1 plan
SaleMark Andrew ShermanEVP, Gen. Counsel & Secretary2× since Dec 1, 2025: 16,100 shares, avg. $67.05$1.1MDec 17, 202510b5-1 plan
SaleKevin J YeamanPresident and CEO, Director3× since Nov 24, 2025: 104,583 shares, avg. $66.94$7.0MDec 17, 202510b5-1 plan
SaleTony A ProphetDirector3,300 shares at $67.85$223,905Nov 25, 202510b5-1 plan
Plus 10 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.69/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+5.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.0%
Start year 2020 (pandemic). Over 10 years: +3.3% a year
Revenue growth 24 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+10.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+2.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+0.3%
Dividend (yield on the price)2.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.1.4% vs 3.7%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.19% → 20%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−0.1%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+3.9%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −2.4% a year for the price and +1.5% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Moderate moat supported by high margins and IP licensing stands as the main strength while thin public signals across most factors and moderate ROE mark the key weakness.
Main risk: Heavy reliance on technology licensing leaves the business exposed if new content partnerships fail to broaden adoption and thereby limit recurring licence revenue.
Dolby is extending its Atmos and Vision formats into live sports with Formula 1 coverage on Apple TV starting later this month. This adds another high-profile content partnership to recent expansions in devices and social platforms, while the business still centers on licensing the underlying technology. Will these newer content deals accelerate adoption more than the established hardware licensing base?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Business Services · 230 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score78 · Top 25%
Fair Value upside+16.5% · Above median
Profitability
Return on equity (12 months)8.8% · Below median
Return on assets7.9% · Above median
Net margin (12 months)16.7% · Top 25%
Operating margin (12 months)12.6% · Above median
Growth and dividend
Revenue growth (quarter YoY)−3.3% · Bottom 25%
Dividend yield (12 months)2.2% · Below median
Valuation Multiplesvs Specialty Business Services median · lower = cheaper
P/E (12 months)26.5× · Pricier than median
P/B2.34× · Pricier than median
P/S (12 months)4.52× · Priciest 25%
Price / free cash flow (fiscal year)14.2× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Dolby Laboratories Fair Value". https://www.fairvalue-calculator.com/stock/DLB
Frequently asked questions
Is Dolby Laboratories (DLB) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of $75.55 versus a price of $64.83, about +17% upside (undervalued).
What is the fair value of DLB?
Our model-based fair value for Dolby Laboratories is $75.55 (as of Nov 6, 2026), built from audited fundamentals. The current price: $64.83.
What is the quality score of DLB?
Dolby Laboratories has a Quality Score of 78/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Dolby Laboratories (DLB)?
Our model-based price target is the fair value of $75.55 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario $56.66, optimistic scenario $93.56. It is a calculation from audited fundamentals, not an analyst target.
What is the Dolby Laboratories stock forecast for 2026?
Our models put fair value at $75.55, about +17% upside versus a price of $64.83 (undervalued). Cautious scenario $56.66, optimistic scenario $93.56. The calculation is refreshed regularly with new filings.
What is the revenue of Dolby Laboratories (DLB)?
Dolby Laboratories reported trailing-twelve-month revenue of about $1.4B (latest available figure, as of Nov 6, 2026).
Does Dolby Laboratories pay a dividend?
Dolby Laboratories currently shows a dividend yield of 2.22% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Dolby Laboratories (DLB) and when is the ex-dividend date?
Dolby Laboratories pays a dividend of $1.44 per share a year, a dividend yield of 2.2%. The last ex-dividend date was Aug 11, 2026. A dividend has been paid every year since 2014. The payout ratio is 61.0% of earnings. Free cash flow covers the dividend 5.03 times. Our assessment: Sustainable. Payout and cash coverage both look sustainable.
What growth is priced into Dolby Laboratories (DLB)?
For today's price to be fair in a discounted-cash-flow model, Dolby Laboratories would have to grow free cash flow by -0.1 % per year for five years (discount rate 9.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +3.0 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of DLB use?
Our models discount Dolby Laboratories at 9.2 %: a base by market capitalisation (mid), damped by beta 0.78, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Dolby Laboratories that is -0.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.2 %) and the same formula as our fair value.
How much growth has Dolby Laboratories (DLB) delivered so far?
Over the past 5 years revenue at Dolby Laboratories grew +3.0 % a year. The price currently implies free-cash-flow growth of -0.1 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Dolby Laboratories (DLB) growing?
The median revenue growth in the sector is +11.5 % a year. That is the yardstick for the growth priced into Dolby Laboratories (-0.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Dolby Laboratories (DLB)?
The free-cash-flow yield on the price is 7.02 %: that much free cash flow Dolby Laboratories produces per unit of market value. When it exceeds the discount rate of our models (9.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Dolby Laboratories (DLB)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Dolby Laboratories it is $75.55 per share (as of Nov 6, 2026), against a price of $64.83. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Dolby Laboratories stock overvalued or undervalued in 2026?
As of Nov 6, 2026, DLB trades below its calculated fair value: price $64.83, fair value $75.55, a gap of about +17% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of DLB?
No. The price is what the market pays today ($64.83); the fair value is what the company's own numbers justify ($75.55). For Dolby Laboratories the two are $10.72 per share apart. That gap is exactly why we show both numbers side by side.
How much is Dolby Laboratories worth?
The market values Dolby Laboratories at about $6.1B (market capitalisation, as of Nov 6, 2026). Per share that is $64.83; our models calculate a fair value of $75.55 per share.
What do the bullish and bearish scenarios say about DLB?
Our models span a range for Dolby Laboratories: cautious scenario $56.66, base $75.55, optimistic $93.56 per share (as of Nov 6, 2026, price $64.83). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of DLB?
Dolby Laboratories trades at a price-to-earnings ratio of 26.5 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $75.55 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 7 of the years ex one-offs: 29.2. Other multiples: PEG 2.1, P/B 2.3, P/S 4.5, EV/EBITDA 15.3.
What is the PEG ratio of DLB?
The PEG ratio of Dolby Laboratories is 2.08 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Dolby Laboratories (DLB)?
Balance-sheet figures for Dolby Laboratories (as of Nov 6, 2026): return on equity 8.8%. They feed the Quality Score of 78/100, which measures business quality independently of the share price.
How far is DLB from its 52-week high?
Dolby Laboratories trades at $64.83, about 5% below its 52-week high of $68.26 and 34% above the low of $48.23 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $75.55 is for.
Which stocks are comparable to Dolby Laboratories?
From the same area (Industrials) we also value Cintas Corporation, Thomson Reuters Corporation, Copart, Inc, Global Payments Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Dolby Laboratories stock attractive at the current price?
The data as of Nov 6, 2026: price $64.83, calculated fair value $75.55 (+17%), Quality Score 78/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of DLB calculated?
We run Dolby Laboratories through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $75.55 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Dolby Laboratories currently trades 14% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Dolby Laboratories (DLB)?
The closing price on Nov 6, 2026 was $64.83. Our model-based fair value is $75.55, about +17% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Dolby Laboratories right now?
The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Where does the earnings growth of Dolby Laboratories (DLB) come from?
Earnings per share at Dolby Laboratories grew +3.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +3.0 %, EBIT margin −1.9 %, tax rate +2.4 %, residual (interest, one-offs) −0.4 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Dolby Laboratories
How large is the market capitalisation of Dolby Laboratories (DLB)?
The market capitalisation of Dolby Laboratories is $6.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Dolby Laboratories (DLB)?
The price-to-sales ratio of Dolby Laboratories is 4.52 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Dolby Laboratories (DLB)?
Earnings per share at Dolby Laboratories are $2.36 (price ÷ EPS = P/E 26.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Dolby Laboratories (DLB)?
The dividend yield of Dolby Laboratories is 2.2% (payout 61.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Dolby Laboratories (DLB)?
The net margin of Dolby Laboratories is 16.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Dolby Laboratories (DLB)?
The return on equity (ROE) of Dolby Laboratories is 8.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Dolby Laboratories (DLB)?
On an EBIT basis the return on assets of Dolby Laboratories is 8.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Dolby Laboratories (DLB)?
The operating margin of Dolby Laboratories is 12.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Dolby Laboratories (DLB)?
Revenue at Dolby Laboratories is growing −3.3% versus a year earlier (3y avg +2.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Dolby Laboratories (DLB)?
Earnings per share at Dolby Laboratories are growing −37.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Dolby Laboratories (DLB) hold?
Dolby Laboratories holds more cash than debt, $663M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 6, 2026