Dolby Laboratories, Inc. DLB
Composite 60/100; the shares have moved about 34% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Momentum ranks 38/100 — a slight mark against it.
Balance-sheet strength ranks 94/100 — a strong point in its favour. Income ranks 65/100 — a moderate point in its favour. Quality ranks 54/100 — a slight point in its favour.
Momentum ranks 38/100 — a slight mark against it.
What the company does Dolby Laboratories designs and licenses immersive audio and video technologies—codecs like AAC, HE-AAC, Dolby Atmos, and Dolby Vision—used in broadcasting, mobile devices, cinemas, and live entertainment. Its SaaS platform, Dolby.io, enables real-time interactive experiences for live events such as sports.
Key financials Dolby reports high gross margins 87.4% and strong profitability with net margins 17.8%, ROE 9.4%, and ROCE 10.0%. Revenue grew 7.1% and EPS 5.3%, though growth scores are weak (Growth 29.6). The balance sheet is conservative with Debt/Equity 0.02 and Net debt/EBITDA -1.50.
Stock health Momentum is negative across all horizons: -17.63% (3m), -14.38% (6m), -30.46% (12m), and -31.00% from the 52-week high. RSI(14) is neutral at 53.20. Sideravia scores Valuation 64.8 (fairly valued), Quality 51.5, and Momentum 20.7 (weak).
Price vs fair value The stock trades at a **discount** of 51.70% to our fair-value estimate of 78.56 and a **discount** of 51.28% to the 12-month target of 78.33. - Q3 earnings beat estimates on lower operating expenses (Zacks) - Earnings call highlights strong licensing growth (GuruFocus.com) - Forward P/E of 10.93 vs trailing 19.79 signals valuation support (Valuation 64.8)
Looking forward Analysts cite licensing strength and cost discipline as near-term drivers, but growth in immersive tech remains a key watchpoint. Forward PEG of 0.13 suggests undervaluation relative to earnings growth potential, though momentum remains weak.
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Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.