QualityDipStocks / Technology · Multi-Sector Companies
Dolby Laboratories DLB
Outside our quality screen, so we don’t track its dips. It’s 10% below its 52-week high.
Outside our quality screen, trading near our fair value estimate.
- Fair value est.
- $65.83+6%
- Market Value
- $60.88price +2%
- Off 52-wk high
- −10%
- Risk vs market
- Lowbeta 0.55
4 bullish · 5 bearish See why
Key levels
Every level vs today’s $61.99
- 52-wk lowlowest close, 1 year$48.51−21.7%
- Market Valueavg paid since Jul 30$60.88−1.8%
- PriceFri Oct 30 close$61.99you are here
- Fair value est.base case$65.83+6.2%
- 52-wk highhighest close, 1 year$69.09+11.5%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, DLB’s free cash flow would need to grow about 2% a year for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much DLB moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Moves much less than the market, but its own price swings are 2.3× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- 0.55
- Volatility
- 29% vs 13% SPY
- Correlation SPY
- 0.24
- Correlation QQQ
- 0.17
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
ValuationFree-cash-flow yield of 6.7% (price / FCF 14.9×): $393M of free cash in the last 12 months.
Cash returnsShare count down 2.5% in a year: $235M of buybacks over 12 months.
ProfitabilityOperating margin widened to 19.6% in FY2025 from 16.6% in FY2023 (SEC filings).
Cash returnsDividend yield of 2.3% ($134M paid over 12 months, 59% of earnings).
Top bearish points 5 of 5
GrowthSales grew 0.6% over the last 12 months, below the 18% median for the 163 Technology companies we cover.
GrowthSales grew only 2.5% a year from FY2022 to FY2025.
GrowthDiluted EPS fell 2.6% in the last fiscal year, below the 18% median for the 118 Technology companies we cover.
ProfitabilityReturn on equity of 8.7%, below the 19% median for the 146 Technology companies we cover.
QualityDoesn’t pass our quality screen: sales down vs the year-ago quarter.
Who’s talking about it
Notable investors, executives, analysts and public figures on Dolby Laboratories in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Technology
All fundamentals
P/E 25.9 · FCF yield 6.7% · ROE 9%
Valuation
- P/E
- 25.9×Technology median 33.9×
- Price / FCF
- 14.9×
- FCF yield
- 6.7%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 4.33×
- Price / book
- 2.27×
- Market cap
- $5.9Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $1.4B
- Sales growth, 12 months
- +0.6%vs the 12 months before
- Sales growth, 3 yrs
- +2.5%/yrfrom FY2022
- Diluted EPS, 12 months
- $2.35
- EPS growth, last FY
- −2.6%
- Net income, 12 months
- $226M
- Net income growth
- −14%12 months vs before
Profitability
- Gross margin
- 87.6%
- Operating margin
- 17.7%
- Net margin
- 16.7%
- FCF margin
- 29.0%
- Return on equity
- 9%
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $670M
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/acash or debt not tagged in SEC data
- Debt / equity
- n/adebt or equity not tagged in SEC data
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $393M
- FCF growth, 12 months
- −10%
- Dividend yield
- 2.29%$134M paid
- Payout ratio
- 59%
- Buybacks, 12 months
- $235M4.0% of market cap
- Share count, 1 year
- −2.5%diluted shares vs a year ago
- Stock-based comp
- $130M
Trailing 12 months to Jun 26, 2026; balance sheet at Jun 26, 2026. From Dolby Laboratories’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $65.83 · MV $60.88 · FCF value $86.68
Assumes 3.0% growth for 5 years (revenue grew 2.5% a year FY22–FY25; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $4.15 a share (trailing 12 months to Jun 26, 2026), from the 10-Q filed Jul 30, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 56 · 5 days −1.4%
The business
FCF $0.3B · Sales −3%
- Free cash flow, 12 months$0.3B
- Free-cash-flow yield5.6%
- Free-cash-flow margin24%
- Gross margin88%
- Operating margin12%
- Return on invested capital13%
- Return on equity9%
- Sales growth (latest quarter vs year-ago quarter)−3%
- Net debt / EBITDA−1.8×
Next report
Nov 17
- DateTue Nov 17, after the close
- Consensus EPS$0.91
- Year-ago EPS$0.73
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
DLB is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.