Dolby Laboratories, Inc. DLB

Information TechnologySoftware & IT ServicesUnited States of America

Last close 61.99 USD on Nov 1, 2026, −1.8% year to date

Quant rating

Quant rating B Rank 150 of 389 in Information Technology

Growth C 250 of 389
Valuation A 58 of 389
Quality B 111 of 389
Revisions C 198 of 389
Momentum C 205 of 389

Wall Street consensus Buy (1.80)Average target 80.28 USD +29.5%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 5.8B
Enterprise value: 5.1B
52-week range: 48.28 – 69.94
3-year range: 48.28 – 89.38
Dividend yield: 2.32%
Beta (5 years): 0.79
Shares outstanding: 93.7M
Next earnings: Nov 17, 2026

About the company

Dolby Laboratories, Inc. is engaged in designing and manufacturing of audio and imaging hardware and software products for the cinema, television, broadcast and entertainment industries. The two primary components of its licensing business are Branded Technologies, which include Branded Audio Codecs, Dolby Atmos & Dolby Vision, and Patents, which include Audio Patents and Imaging Patents. The Company's cinema imaging products include digital cinema servers used to load, store, decrypt, decode, watermark, and playback digital film files for presentation on digital cinema projectors and software used to encrypt, encode and package digital media files for distribution. Its cinema audio products include cinema processors, amplifiers and loudspeakers used to decode, render, and optimally play back digital cinema soundtracks, including those using Dolby Atmos. It also offers various services to support theatrical and television production for cinema, broadcast, and home entertainment.

Growth and profitability fiscal year ends September 30

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	1,349	1,274	1,300	1,254	1,281	–
Revenue growth	5.9%	−2.0%	3.7%	−2.1%	10.3%	3.0%
EPS (basic, normalized)	4.24	3.79	3.56	3.14	3.66	–
EPS growth	11.9%	6.5%	13.4%	−14.2%	–	–
Gross margin	88.1%	89.0%	88.3%	88.7%	89.9%	88.8%
Net margin	18.9%	20.6%	15.4%	14.7%	24.2%	18.8%
ROE	10.0%	10.8%	8.7%	7.6%	12.3%	9.9%

Balance sheet, last quarter
Cash & short-term investments (mil)	670
Current ratio	3.19x
Long-term debt (mil)	0
Net debt (mil)	−661
Total equity (mil)	2,584
Net debt / equity	−0.26x
Net debt / EBITDA	−1.33x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	1,349	+5.9%	3.8x	496	+11.9%	10.4x	4.24	+11.9%	14.6x
2026	1,420	+5.3%	3.6x	527	+6.1%	9.8x	4.32	+1.9%	14.3x
2027	1,467	+3.3%	3.5x	565	+7.3%	9.1x	4.58	+6.0%	13.5x
2028	1,536	+4.6%	3.4x	628	+11.1%	8.2x	5.10	+11.4%	12.2x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	1,420	0.0%	+0.4%	+0.8%	4.32	0.0%	+0.2%	+0.3%
2027	1,467	0.0%	−0.2%	+0.2%	4.58	0.0%	−0.5%	−0.5%
2028	1,536	0.0%	−0.9%	−0.9%	5.10	0.0%	0.0%	+1.0%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	365	289	305	357	370	316	307	347	396	305
Sales mean (mil)	359	286	308	346	376	305	305	332	386	312
Surprise	+1.4%	+0.9%	−1.0%	+3.1%	−1.8%	+3.4%	+0.8%	+4.3%	+2.5%	−2.2%
EPS reported	1.27	0.71	0.81	1.14	1.34	0.78	0.99	1.06	1.37	0.69
EPS mean	1.19	0.59	0.70	1.05	1.27	0.71	0.70	0.88	1.33	0.68
Surprise	+6.4%	+20.3%	+16.3%	+8.2%	+5.8%	+9.3%	+41.4%	+20.9%	+2.8%	+2.2%

Peer comparison Software & IT Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
DLB Dolby Laboratories, Inc.	5.8B	−1.33x	18.9%	2.25x	14.3x	13.5x	9.8x	9.1x
GOOGL Alphabet Inc.	3.43T	−0.67x	32.8%	5.08x	14.1x	18.6x	14.3x	10.9x
META Meta Platforms, Inc.	1.60T	0.01x	37.1%	5.77x	21.3x	18.2x	11.4x	8.9x
NFLX Netflix, Inc.	254.9B	0.49x	24.3%	8.70x	17.3x	16.5x	15.3x	13.3x
UBER Uber Technologies, Inc.	133.3B	0.96x	19.3%	4.87x	19.8x	14.4x	12.7x	10.3x
SPOT Spotify Technology S.A.	122.0B	−3.72x	12.9%	13.04x	44.7x	34.7x	32.5x	24.9x
Mean		−0.71x	24.2%	6.62x	21.9x	19.3x	16.0x	12.9x
Median		−0.33x	21.8%	5.42x	18.5x	17.4x	13.5x	10.6x

Technical analysis

1M+6.5%
3M+18.7%
1Y−4.7%
3Y−16.7%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Dolby Laboratories, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	1,349	1,274	1,300	1,254	1,281	1,162
Cost of revenue	160	140	153	141	130	146
Gross profit	1,189	1,133	1,147	1,112	1,151	1,015
Selling, general & administrative expenses	647	605	613	634	557	556
Research & development	262	264	272	261	254	239
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	15.0	6.4	47.1	10.6	−3.6	1.8
Other operating expenses	0	0	0	0	0	0
Operating income	265	258	216	207	344	219
Net interest income (expense)	40.7	50.1	28.6	4.9	2.3	11.2
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−2.2	4.1	5.7	3.8	7.9	9.8
Net income before taxes	303	312	250	215	355	240
Provision for taxes	47.0	48.2	48.4	31.4	36.7	8.1
Minority interest	−1.5	−2.5	−1.0	0.2	−7.6	−0.3
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	255	262	201	184	310	231
Extraordinary items	–	–	–	–	–	–
Net income	255	262	201	184	310	231
EBIT, normalized	280	265	263	217	341	221
EBITDA, normalized	368	340	345	306	437	311
Basic EPS, normalized	4.24	3.79	3.56	3.14	3.66	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Dolby Laboratories, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	703	482	885	809	1,264	1,119
Receivables	512	513	444	420	415	342
Total inventory	30.4	33.7	35.6	23.5	11.0	25.6
Prepaid expenses	28.0	29.7	24.4	26.9	30.0	17.9
Other current assets	115	136	98.9	31.5	40.4	43.2
Total current assets	1,388	1,194	1,488	1,311	1,760	1,547
Property, plant & equipment	504	518	522	560	602	618
Goodwill	530	533	408	365	341	337
Intangibles	397	435	167	112	123	152
Long-term investments	80.2	89.3	97.8	103	62.8	52.1
Note receivable	–	–	–	–	–	–
Other long-term assets	329	340	297	239	217	210
Total assets	3,228	3,110	2,980	2,690	3,106	2,917
Liabilities
Accounts payable	–	–	–	–	–	–
Payable/accrued	17.8	17.4	20.9	14.2	17.8	12.6
Accrued expenses	213	203	215	180	205	175
Short-term debt	0	0	0	0	0	0
Current portion of long-term debt	–	–	–	–	–	–
Other current liabilities	207	197	187	83.0	92.7	79.1
Total current liabilities	438	418	422	278	316	267
Long-term debt	0	0	0	0	0	0
Minority interest	9.4	9.7	17.1	4.8	6.3	5.8
Other liabilities	158	205	185	161	186	212
Total liabilities	605	633	625	443	508	485
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	0.1	0.1	0.1	0.1	0.1	0.1
Additional paid-in capital	–	–	–	–	–	–
Retained earnings (accumulated deficit)	2,635	2,496	2,392	2,298	2,608	2,443
Treasury stock	–	–	–	–	–	–
Other equity	−12.5	−19.2	−37.0	−51.6	−10.0	−10.6
Total equity	2,623	2,477	2,355	2,246	2,598	2,433
Total liabilities & shareholders' equity	3,228	3,110	2,980	2,690	3,106	2,917

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Dolby Laboratories, Inc., fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	256	264	202	184	318	232
Depreciation, depletion & amortization	87.8	75.6	82.6	88.5	95.9	90.9
Deferred taxes	5.0	−21.6	−18.3	−29.5	−37.0	−5.3
Non-cash items	140	116	143	132	95.8	108
Changes in working capital	−17.0	−107	−42.0	−56.3	−24.6	−81.1
Cash from operations	472	327	367	319	448	344
Investing activities
Capital expenditures	−41.9	−30.0	−30.3	−59.5	−54.5	−69.0
Other investing cash flows	31.4	−256	84.5	−236	9.5	203
Cash from investing	−10.6	−286	54.2	−296	−44.9	134
Financing activities
Financing cash flow items	−1.8	−15.1	−0.8	−1.4	−7.4	−5.0
Cash dividends paid	−127	−115	−103	−100	−89.2	−88.6
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−119	−158	−133	−509	−156	−114
Cash from financing	−247	−288	−237	−611	−253	−208
Foreign exchange effects	1.2	6.6	5.1	−16.7	2.7	3.9
Net change in cash	216	−240	190	−605	153	274
Free cash flow	430	297	337	259	393	275

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.