Dolby Laboratories (DLB) Fair Value & Analysis
Industrials · US · Market cap $4.6B · ISIN US25659T1079
What is Dolby Laboratories really worth?
Dolby Laboratories
DLB · US
A strong business, trading 47% below our fair value of $116.36.
Strengths
For context
Fair value as of: Aug 13, 2026
From 26 valuation models · updated 22 days ago
Fair value updated Aug 13, 2026, revised from $52.32 to $116.36 (+122.4%) since Jul 19, 2026. Share price +1.1% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The rarer combination: high quality (77/100) AND below fair value. That earns a closer look rather than a quick verdict.
- The price is below even our cautious bear case ($86.20). The market is more pessimistic than our downside scenario.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range $48.51 – $94.48 · fair‑value band $86.20 – $142.71 · the $61.92 price screens below the $116.36 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Dolby Laboratories (DLB) currently trades at $61.92, while our model-based Fair Value estimate is $116.36, implying the stock looks roughly 46.8% undervalued today. The Quality Score stands at 77/100 (high quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of $120.46 per share, and 18 of the 26 models we run sit above the $61.92 price. Bear case: the Earnings-Based group reads lowest at $24.93, and 8 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Dolby Laboratories 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 Aug 13, 2026
Our scenario range runs from $86.20 (bear case) to $142.71 (bull case); at $61.92, the current price sits below 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 −24% fair-value upside, at 88%, DLB screens cheaper than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 11 months have passed since. In that time the company retained roughly $1.03 per share, which is 0.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.
All 26 models by family
Widest divergence: DCF Models ($120.46) versus Earnings-Based ($24.93). Highest evidence: FCF DCF (80).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 76 · Market factors (momentum, volatility) 48
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
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 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.
of which total revenue +2.3 % · buybacks/dilution +0.6 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
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Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Zacks Industry Outlook Highlights Sony, Dolby Laboratories and Sonos
- Dolby Laboratories Announces Leadership Transition
- Dolby Laboratories (DLB) Expands Into In Car Gaming And Live Sports Streaming
Peer Group
Specialty Business Services · 248 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
Strength profile in five axes (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: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Specialty Business Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Cintas Corporation CTAS | $204.15 | $95.19 | −53% |
| RELX PLC RELX | $34.55 | $32.24 | −7% |
| Thomson Reuters Corporation TRI | C$142.85 | C$70.40 | −51% |
| Copart, Inc CPRT | $32.76 | $28.59 | −13% |
| Global Payments Inc GPN | $91.05 | $68.98 | −24% |
| RB Global, Inc RBA | C$119.68 | C$68.30 | −43% |
| Brambles Limited BXB | A$19.47 | A$17.27 | −11% |
| UL Solutions Inc ULS | $74.43 | $33.62 | −55% |
| Wolters Kluwer N.V WKL | €68.88 | €101.27 | +47% |
| Aramark ARMK | $59.08 | $13.18 | −78% |
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