# Dolby Laboratories (DLB) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Technology / IT Services. Price $61.96, market value $5.8 billion.

## Valuation
- **P/E (trailing): 26.4×** (5-yr avg 30.8×, 3-yr avg 30.4×). Dolby Laboratories trades at 26.4× trailing earnings, close to its own five-year average of 30.8×. The Technology median in the September 2026 study was 32.1×. Forward P/E is 13.5×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 4.3×**. Each dollar of revenue is priced at 4.3×.
- **Price / book: 2.2×**. The shares trade at 2.2× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 6.8%** (5-yr avg 4.7%). Free cash flow equals 6.8% of the market value, above its five-year average of 4.7%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.8%**. The inverse of the P/E: 3.8% of the price is earned each year.

## Profitability
- **Gross margin: 87.6%**. Dolby Laboratories keeps 87.6% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 17.7%**. 17.7% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 18.9%**. 18.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.7%**. 9.7% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on assets: 7.0%**. Each dollar of assets produces 7.0% of profit.

## Growth
- **Revenue growth (1 yr): 5.9%** (3-yr 2.5%/yr, 5-yr 3.0%/yr). Revenue grew 5.9% over the last year, against 3.0% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -2.6%** (3-yr 13.1%/yr, 5-yr 3.1%/yr). Earnings per share fell 2.6%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 17.2%/yr**. Free cash flow has compounded at 17.2% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Current ratio: 3.17** (quick 3.17). Current assets cover the next year's liabilities 3.17 times.
- **Altman Z-score: 8.02**. A Z-score of 8.02 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.32%** ($1.44 per share, trailing). Dolby Laboratories yields 2.32%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 50%** (34% of free cash flow). 50% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 12**. 12 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 8.9%/yr** (1-yr 9.8%). The dividend has grown 8.9% a year over five years.

## Analyst view
- **Analyst consensus: buy** (3 analysts). 3 analysts cover Dolby Laboratories; the consensus is buy, with an average price target of $79.00 (+28% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): -13.4%** (YTD -2.4%, 3-mo 15.2%). The shares are down 13.4% over twelve months including dividends.
- **From 52-week high: -16.0%** (28.4% above the low). Trading 16% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 56**. An RSI of 56 is neutral.
- **Beta (1 yr): 0.66** (volatility 29%). Beta of 0.66 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=DLB · Page: https://foliofundamentals.com/stocks/dlb

Not investment advice.