Latest Ratios: P/E Ratio 22.1x · EV/EBITDA 13.4x · ROE 10.0%. (2003–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.5B | $7.1B | $7.4B | $7.7B | $6.6B | $9.7B | $6.7B | $6.7B | $7.5B | $5.9B | $5.6B |
| Enterprise Value | $4.9B | $6.4B | $6.8B | $7.0B | $6.1B | $8.5B | $5.7B | $5.9B | $6.6B | $5.3B | $5.0B |
| P/E Ratio → | 22.15 | 27.63 | 28.11 | 40.44 | 35.99 | 31.13 | 28.88 | 26.14 | 61.38 | 29.50 | 29.99 |
| P/S Ratio | 4.09 | 5.23 | 5.78 | 5.95 | 5.30 | 7.55 | 5.76 | 5.37 | 7.10 | 5.49 | 5.42 |
| P/B Ratio | 2.15 | 2.68 | 2.96 | 3.26 | 2.95 | 3.71 | 2.74 | 2.88 | 3.41 | 2.77 | 2.81 |
| P/FCF | 12.83 | 16.40 | 24.76 | 22.97 | 25.64 | 24.60 | 24.34 | 31.15 | 28.05 | 21.77 | 40.21 |
| P/OCF | 11.69 | 14.94 | 22.49 | 21.07 | 20.86 | 21.61 | 19.46 | 20.36 | 21.25 | 15.73 | 15.44 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.74 | 5.36 | 5.36 | 4.84 | 6.64 | 4.90 | 4.72 | 6.22 | 4.91 | 4.91 |
| EV / EBITDA | 13.36 | 17.59 | 19.40 | 19.44 | 18.91 | 19.50 | 18.27 | 15.48 | 24.82 | 15.35 | 15.84 |
| EV / EBIT | 18.33 | 22.84 | 21.85 | 27.86 | 28.18 | 24.01 | 23.74 | 20.78 | 33.41 | 20.68 | 21.37 |
| EV / FCF | — | 14.86 | 22.97 | 20.69 | 23.41 | 21.65 | 20.71 | 27.39 | 24.58 | 19.44 | 36.45 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 88.1% | 88.1% | 89.0% | 88.3% | 88.7% | 89.9% | 87.4% | 87.0% | 87.9% | 89.1% | 89.4% |
| Operating Margin | 19.6% | 19.6% | 20.8% | 20.2% | 17.3% | 26.6% | 19.0% | 23.6% | 17.4% | 24.2% | 22.7% |
| Net Profit Margin | 18.9% | 18.9% | 20.6% | 15.4% | 14.7% | 24.2% | 19.9% | 20.5% | 4.0% | 18.7% | 18.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.0% | 10.0% | 10.8% | 8.7% | 7.6% | 12.3% | 9.7% | 11.3% | 1.9% | 9.8% | 9.8% |
| ROA | 8.0% | 8.0% | 8.5% | 7.0% | 6.3% | 10.2% | 8.0% | 9.0% | 1.5% | 8.3% | 8.4% |
| ROIC | 10.1% | 10.1% | 11.2% | 12.0% | 10.5% | 17.7% | 11.2% | 15.9% | 9.9% | 13.2% | 12.8% |
| ROCE | 9.6% | 9.6% | 10.0% | 10.5% | 8.3% | 12.4% | 8.5% | 11.5% | 7.5% | 11.9% | 11.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | — | — | — | — |
| Debt / EBITDA | 0.11 | 0.11 | 0.13 | 0.14 | 0.16 | 0.17 | 0.26 | — | — | — | — |
| Net Debt / Equity | — | -0.25 | -0.21 | -0.32 | -0.26 | -0.45 | -0.41 | -0.35 | -0.42 | -0.30 | -0.26 |
| Net Debt / EBITDA | -1.82 | -1.82 | -1.51 | -2.14 | -1.80 | -2.66 | -3.21 | -2.13 | -3.50 | -1.83 | -1.63 |
| Debt / FCF | — | -1.54 | -1.79 | -2.28 | -2.23 | -2.95 | -3.63 | -3.76 | -3.47 | -2.32 | -3.76 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($702M) exceeds total debt ($39M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.17 | 3.17 | 2.86 | 3.52 | 4.72 | 5.58 | 5.79 | 4.50 | 4.78 | 4.12 | 3.57 |
| Quick Ratio | 3.10 | 3.10 | 2.78 | 3.44 | 4.64 | 5.54 | 5.70 | 4.40 | 4.69 | 4.01 | 3.49 |
| Cash Ratio | 1.60 | 1.60 | 1.38 | 2.27 | 2.95 | 4.03 | 4.22 | 3.01 | 4.05 | 3.59 | 3.01 |
| Asset Turnover | — | 0.42 | 0.41 | 0.43 | 0.46 | 0.41 | 0.40 | 0.44 | 0.37 | 0.43 | 0.44 |
| Inventory Turnover | 5.26 | 5.26 | 4.17 | 4.28 | 6.00 | 11.86 | 5.73 | 4.98 | 4.87 | 4.72 | 6.66 |
| Days Sales Outstanding | — | 138.49 | 146.99 | 124.79 | 122.18 | 118.20 | 107.35 | 113.34 | 115.78 | 25.72 | 27.39 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.2% | 1.8% | 1.6% | 1.3% | 1.5% | 0.9% | 1.3% | 1.2% | 0.9% | 1.0% | 0.9% |
| Payout Ratio | 49.6% | 49.6% | 43.8% | 51.5% | 54.4% | 28.7% | 38.3% | 30.4% | 158.5% | 28.3% | 26.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.5% | 3.6% | 3.6% | 2.5% | 2.8% | 3.2% | 3.5% | 3.8% | 1.6% | 3.4% | 3.3% |
| FCF Yield | 7.8% | 6.1% | 4.0% | 4.4% | 3.9% | 4.1% | 4.1% | 3.2% | 3.6% | 4.6% | 2.5% |
| Buyback Yield | 2.9% | 2.3% | 2.7% | 2.3% | 8.5% | 2.9% | 2.9% | 5.4% | 2.3% | 2.0% | 2.1% |
| Total Shareholder Yield | 5.2% | 4.1% | 4.3% | 3.7% | 10.0% | 3.8% | 4.3% | 6.6% | 3.2% | 2.9% | 2.9% |
| Shares Outstanding | — | $97M | $97M | $98M | $102M | $105M | $103M | $105M | $107M | $103M | $102M |
Includes 30+ ratios · 23 years · Updated daily
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Quick answers to the most common questions about buying DLB stock.
Dolby Laboratories, Inc.'s current P/E ratio is 22.1x. The historical average is 27.1x. This places it at the 33th percentile of its historical range.
Dolby Laboratories, Inc.'s current EV/EBITDA is 13.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.1x.
Dolby Laboratories, Inc.'s return on equity (ROE) is 10.0%. The historical average is 14.5%.
Based on historical data, Dolby Laboratories, Inc. is trading at a P/E of 22.1x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Dolby Laboratories, Inc.'s current dividend yield is 2.24% with a payout ratio of 49.6%.
Dolby Laboratories, Inc. has 88.1% gross margin and 19.6% operating margin. Operating margin between 10-20% is typical for established companies.
Dolby Laboratories, Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
AV1 codec adoption threat
Metrics are mathematically derived from official filings.
Gross Margin Stability Masks Operating Volatility
Gross margin held near 87% in Q3 2026, but operating margin swung to 12.5% from 29.1% in Q2, per reported figures, indicating cost control is the key variable.
The 86-90% gross margin range over ten quarters confirms the IP-centric model's pricing power, yet operating margin volatility (9.7% to 30.3%) suggests fixed costs are not always covered during revenue dips. The Q3 2026 operating margin of 12.5% is well below the 10-quarter average, implying that SG&A escalation and product mix shifts are pressuring profitability. Investors should monitor whether this is a one-off timing effect or a structural margin compression trend.
Return on Capital Remains Modest but Stable
ROIC averaged roughly 2.7% over the last ten quarters, with Q3 2026 at 1.4%, as per financial statements, reflecting a capital-light model with high cash balances.
Despite high gross margins, ROIC is low because the balance sheet carries significant cash and investments that earn minimal returns, diluting the return on total capital. The 10-quarter ROIC range of 1.1% to 4.7% indicates no clear compounding trend, suggesting that the company is not reinvesting at high incremental returns. This may imply that capital allocation is focused on returning cash to shareholders rather than pursuing high-ROIC growth opportunities.
Working Capital Cycle Lengthens on Receivables
Cash conversion cycle extended to 201 days in Q3 2026 from 175 days in Q2 2026, driven by DSO of 167 days, as reported in the latest quarterly data.
The CCC has trended upward over the past year, with DSO rising from 129 days in Q2 2024 to 167 days in Q3 2026, indicating slower collections from licensees. This may reflect the lagged royalty reporting typical of the licensing model, but the magnitude suggests potential strain in customer payment behavior. The company's strong liquidity position (current ratio 3.19) mitigates near-term risk, but the lengthening cycle warrants monitoring for cash flow timing distortions.
Minimal Leverage Provides Strategic Flexibility
Debt-to-equity stands at 0.02 with D/EBITDA of 0.75, as per the latest balance sheet, indicating negligible leverage and ample capacity to weather revenue volatility.
With total debt of only $47.5M against $2.6B equity, the company's balance sheet is a fortress, and interest coverage is effectively infinite. This low leverage suggests that the company is insulated from rising rate environments and can fund its dividend and buyback program without financial strain. However, the conservative capital structure may also indicate a lack of high-return internal investment opportunities, as reflected in the modest ROIC.
Liquidity Buffer Absorbs Royalty Timing Swings
Current ratio of 3.19 and quick ratio of 3.11 in Q3 2026, per reported data, provide a substantial cushion against lumpy royalty collections and potential revenue dips.
The liquidity position is robust, with cash and short-term investments covering nearly all current liabilities, and the company has no near-term debt maturities. This buffer is critical given the volatility in operating cash flow, which swung from a $90.5M inflow in Q3 2026 to a $72.1M outflow in Q2 2026. Even under a severe stress scenario, such as a prolonged consumer electronics downturn, the company appears well-positioned to maintain operations and shareholder returns.
P/E Misleads on Licensing Model Earnings
The trailing P/E of 24.91 overstates value because it includes volatile one-off items, while forward P/E of 14.88 better reflects normalized earnings, as per current valuation data.
The most commonly misapplied ratio for Dolby is the P/E, because reported earnings are subject to significant timing effects from royalty audits and stock-based compensation, which can distort the multiple. For instance, the Q3 2026 EPS miss of $0.69 versus $1.2 estimate suggests that trailing earnings may not be representative of sustainable earning power. Instead, investors should focus on EV/EBITDA (15.26) or P/FCF (14.43), which better capture the cash-generative nature of the licensing model and smooth out non-cash charges.