Dolby Laboratories Inc.
Founded in 1965, we are in the business of improving entertainment experiences by inventing and innovating technologies that advance audio and video capture, transmission, and playback. We enable highly compelling experiences in movies and TV shows, music, sports and more by meeting the needs of content creators, distributors, and consumer electronics manufacturers.
$63.28
+$0.76 (+1.22%)
EOD Oct 22, 2026
19.64% operating margin is respectable but not wide. ROIC at 8.41%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 5.9%, steady but not accelerating.
At 27x earnings, the current multiple leaves limited room for execution misses or growth deceleration.
27.0x earnings, 15.2x FCF. Not cheap, the quality is already reflected in the price. Upside from here requires either margin expansion or growth re-acceleration, not just continuation.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.35B
▲ +5.9% YoY
Net Income (TTM)
$226M
▼ -2.6% YoY
Op. Margin
17.65%
▼ -0.6pp YoY
ROIC
7.19%
▼ -0.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$393M
▲ +46.6% YoY
Op. Cash Flow (TTM)
$438M
▲ +44.3% YoY
Net Debt
-$623M
Net Cash Position
Cash & Equiv.
$670M
5Y CAGR: +3.0%
5Y CAGR: +9.4%
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SourceComputed from the 10-Q filed 30 Jul 2026, covering the period ending 26 Jun 2026, as reported to the SEC. Data last refreshed 3 Oct 2026. How this is calculated.
Price from market data, last close as of 22 Oct 2026. Fiscal year ends Sep. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is Dolby Laboratories (DLB) overvalued?
At a P/E of 27.0 and a price-to-free-cash-flow of 15.2, Dolby Laboratories (DLB) trades around a two-stage DCF intrinsic value of about $78.58 per share, so at $63.28 the stock looks around fair value (24.2% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Dolby Laboratories scores 64/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 2.2%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is Dolby Laboratories's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $78.58 per share for DLB, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $58.94. At today's $63.28, that puts the stock about 24.2% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is Dolby Laboratories a high-quality business?+
Dolby Laboratories scores 64 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 17.7% operating margin and a 7.2% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Does Dolby Laboratories (DLB) pay a dividend, and how much?+
Yes, Dolby Laboratories pays a regular dividend of about $1.42 per share per year (typically in quarterly installments), a yield of roughly 2.2% at the current price. That is a payout ratio of about 59.4% of earnings, so the dividend is well covered. Dolby Laboratories has grown the dividend at roughly 9.2% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For DLB's full payout history, growth streak and dividend-safety score, see the dividends tab.
Is Dolby Laboratories a good stock to buy right now?+
That depends on valuation and quality together, not either alone. DLB currently trades around its estimated intrinsic value and scores 64/100 on quality (solid). It also yields about 2.2%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
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Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
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