Dolby Laboratories, Inc. (DLB) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+12.0%

$71.46

vs $63.80 price

Levered DCF

$84.21

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

8.39

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	27.21×	27.59×	39.63×	35.41×	30.12×	28.26×	25.75×	58.72×
P/B	2.65×	2.92×	3.22×	2.9×	3.6×	2.69×	2.85×	3.27×
P/S	5.14×	5.67×	5.84×	5.2×	7.3×	5.63×	5.29×	6.79×
EV / EBITDA	16.58×	16.74×	19.75×	18.62×	18.2×	15.75×	15.69×	22.47×
Gross margin	88.1%	89.0%	88.3%	88.7%	89.9%	87.4%	87.0%	87.9%
Operating margin	19.6%	20.8%	20.2%	17.3%	26.6%	19.0%	23.6%	17.4%
Net margin	18.9%	20.6%	15.4%	14.7%	24.2%	19.9%	20.5%	4.0%
Current ratio	3.17×	2.86×	3.52×	4.72×	5.58×	5.79×	4.5×	4.78×
Debt / equity	0.01×	0.02×	0.02×	0.02×	0.03×	0.03×	0×	0×
Interest coverage	0×	0×	0×	0×	0×	0×	0×	0×
Dividend yield	1.8%	1.6%	1.4%	1.5%	1.0%	1.4%	1.2%	0.9%
Payout ratio	49.6%	43.8%	51.5%	54.4%	28.7%	38.3%	30.4%	158.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.7%	10.6%	8.5%	8.2%	11.9%	9.5%	11.1%	1.9%
Return on invested capital	8.0%	8.2%	8.2%	7.6%	10.8%	7.9%	10.6%	1.6%
Return on assets	7.9%	8.4%	6.7%	6.8%	9.9%	7.9%	9.0%	1.5%
Free cash flow yield	6.2%	4.1%	4.4%	4.0%	4.2%	4.2%	3.3%	3.7%
Earnings yield	3.7%	3.6%	2.6%	2.8%	3.3%	3.5%	3.9%	0.6%
Enterprise value	$6.3B	$6.7B	$6.8B	$5.9B	$8.2B	$5.5B	$5.8B	$6.2B
Net debt / EBITDA	-1.75×	-1.33×	-2.22×	-1.81×	-2.58×	-2.84×	-2.19×	-3.33×
Cash conversion cycle (days)	167	189	160	146	99	140	152	128