Dolby Laboratories, Inc (DLB) Fair Value & Analysis
Industrials · US · Market cap $4.6B
Dolby Laboratories, Inc
DLB · US
Fair value as of: Jul 19, 2026
From 26 valuation models · updated 21 days ago
Fair value updated Jul 19, 2026, revised from $51.03 to $52.32 (+2.5%) since Jul 5, 2026. Share price +23.8% over the past month.
A strong business, but screening 15% overvalued on our models.
What matters now
- A high-quality business (quality 77/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
- Our model range runs from $39.24 (bear) to $65.40 (bull), base $52.32. The closer the price sits to the lower half, the larger the margin of safety.
- Quality 77/100 (high quality) with high evidence: the data supports the verdict.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.
How to read this chart
60‑month range $48.51 – $95.56 · fair‑value band $39.24 – $65.40 · the $61.77 price screens above the $52.32 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.
Analysis
Dolby Laboratories, Inc (DLB) currently trades at $61.77, while our model-based Fair Value estimate is $52.32, implying the stock looks roughly 15.3% overvalued today. The Quality Score stands at 77/100 (high quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, Dolby Laboratories, Inc generated revenue of $1.4B at a net margin of 17.9%. Revenue grew 7.1% year over year. It earns a return on equity of 9.4%. The balance sheet holds a net cash position of $663M. Fundamentals as of Jul 19, 2026
Our scenario range runs from $39.24 (bear case) to $65.40 (bull case); at $61.77, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 18% below its 52-week high and 18% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at -15%, DLB screens cheaper than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 26 models by family
Widest divergence: DCF Models ($103.27) versus Earnings-Based ($24.93). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 76 · Market factors (momentum, volatility) 45
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
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.
Full company description
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. 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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Dolby Laboratories, Inc 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.
DLB screens 15% overvalued. Compare with Cintas Corporation →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Dolby Vision 2 Arrives, Bringing Dolby's Most Advanced Picture Experience Yet to Hisense TVs
- Can Dolby's Fiscal Q4 Growth Outlook Overcome Licensing Volatility?
- Is Dolby Stock Worth Buying as Growth Meets Near-Term Execution Risks?
- Does Dolby Laboratories (DLB) Look Fairly Valued After Q3 Results?
Peer Group
Specialty Business Services · 255 stocks
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.
Valuation Multiples vs Specialty Business Services median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 44/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Cintas Corporation CTAS | $206.25 | $95.30 | -54% |
| RELX PLC RELX | $33.70 | $32.49 | -4% |
| Thomson Reuters Corporation TRI | C$133.87 | C$70.40 | -47% |
| Copart, Inc CPRT | $27.61 | $28.59 | +4% |
| Global Payments Inc GPN | $80.49 | $69.67 | -13% |
| RB Global, Inc RBA | C$156.43 | C$49.14 | -69% |
| Brambles Limited BXB | A$18.79 | A$12.28 | -35% |
| UL Solutions Inc ULS | $87.76 | $33.62 | -62% |
| Wolters Kluwer N.V WKL | €62.56 | €103.99 | +66% |
| Aramark ARMK | $56.74 | $13.73 | -76% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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