DLB PE Ratio & Valuation,Is DLB Overvalued

DLB Relative Valuation

DLB's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, DLB is overvalued; if below, it's undervalued.

Historical Valuation

Dolby Laboratories Inc (DLB) is now in the Undervalued zone, suggesting that its current forward PE ratio of 15.86 is considered Undervalued compared with the five-year average of 22.24. The fair price of Dolby Laboratories Inc (DLB) is between 97.35 to 121.39 according to relative valuation methord. Compared to the current price of 67.06 USD , Dolby Laboratories Inc is Undervalued By 31.12%.

Relative Value

Fair Zone

97.35-121.39

Current Price：67.06

31.12%

Undervalued

15.86

10.88

EV/EBITDA

Dolby Laboratories Inc. (DLB) has a current EV/EBITDA of 10.88. The 5-year average EV/EBITDA is 14.31. The thresholds are as follows: Strongly Undervalued below 10.71, Undervalued between 10.71 and 12.51, Fairly Valued between 16.12 and 12.51, Overvalued between 16.12 and 17.92, and Strongly Overvalued above 17.92. The current Forward EV/EBITDA of 10.88 falls within the Undervalued range.

20.02

EV/EBIT

Dolby Laboratories Inc. (DLB) has a current EV/EBIT of 20.02. The 5-year average EV/EBIT is 23.43. The thresholds are as follows: Strongly Undervalued below 16.63, Undervalued between 16.63 and 20.03, Fairly Valued between 26.83 and 20.03, Overvalued between 26.83 and 30.23, and Strongly Overvalued above 30.23. The current Forward EV/EBIT of 20.02 falls within the Undervalued range.

4.56

Dolby Laboratories Inc. (DLB) has a current PS of 4.56. The 5-year average PS is 5.98. The thresholds are as follows: Strongly Undervalued below 4.24, Undervalued between 4.24 and 5.11, Fairly Valued between 6.85 and 5.11, Overvalued between 6.85 and 7.72, and Strongly Overvalued above 7.72. The current Forward PS of 4.56 falls within the Undervalued range.

13.30

P/OCF

Dolby Laboratories Inc. (DLB) has a current P/OCF of 13.30. The 5-year average P/OCF is 15.46. The thresholds are as follows: Strongly Undervalued below 0.38, Undervalued between 0.38 and 7.92, Fairly Valued between 23.00 and 7.92, Overvalued between 23.00 and 30.54, and Strongly Overvalued above 30.54. The current Forward P/OCF of 13.30 falls within the Historic Trend Line -Fairly Valued range.

14.12

P/FCF

Dolby Laboratories Inc. (DLB) has a current P/FCF of 14.12. The 5-year average P/FCF is 19.81. The thresholds are as follows: Strongly Undervalued below 2.76, Undervalued between 2.76 and 11.29, Fairly Valued between 28.34 and 11.29, Overvalued between 28.34 and 36.87, and Strongly Overvalued above 36.87. The current Forward P/FCF of 14.12 falls within the Historic Trend Line -Fairly Valued range.

Dolby Laboratories Inc (DLB) has a current Price-to-Book (P/B) ratio of 2.46. Compared to its 3-year average P/B ratio of 3.11 , the current P/B ratio is approximately -20.80% higher. Relative to its 5-year average P/B ratio of 3.21, the current P/B ratio is about -23.48% higher. Dolby Laboratories Inc (DLB) has a Forward Free Cash Flow (FCF) yield of approximately 6.76%. Compared to its 3-year average FCF yield of 4.57%, the current FCF yield is approximately 47.71% lower. Relative to its 5-year average FCF yield of 4.36% , the current FCF yield is about 55.00% lower.

2.46

P/B

Median3y

3.11

Median5y

3.21

6.76

FCF Yield

Median3y

4.57

Median5y

4.36

Competitors Valuation Multiple

The average P/S ratio for DLB's competitors is 8.17, providing a benchmark for relative valuation. Dolby Laboratories Inc Corp (DLB) exhibits a P/S ratio of 4.56, which is -44.16% above the industry average. Given its robust revenue growth of 0.73%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of DLB decreased by 13.52% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 25.29 to 25.79.

The secondary factor is the Revenue Growth, contributed 0.73%to the performance.

Overall, the performance of DLB in the past 1 year is driven by P/E Change. Which is more unsustainable.

0.73%

304.81M → 307.02M

Revenue Growth

-16.26%

19.31 → 16.17

Margin Expansion

2.01%

25.29 → 25.79

P/E Change

-13.52%

78.10 → 67.54

Mkt Cap Growth

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Frequently Asked Questions

Is Dolby Laboratories Inc (DLB) currently overvalued or undervalued?

What is Dolby Laboratories Inc (DLB) fair value?

DLB's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Dolby Laboratories Inc (DLB) is between 97.35 to 121.39 according to relative valuation methord.

How does DLB's valuation metrics compare to the industry average?

What is the current P/B ratio for Dolby Laboratories Inc (DLB) as of Dec 15 2025?

As of Dec 15 2025, Dolby Laboratories Inc (DLB) has a P/B ratio of 2.46. This indicates that the market values DLB at 2.46 times its book value.

What is the current FCF Yield for Dolby Laboratories Inc (DLB) as of Dec 15 2025?

As of Dec 15 2025, Dolby Laboratories Inc (DLB) has a FCF Yield of 6.76%. This means that for every dollar of Dolby Laboratories Inc’s market capitalization, the company generates 6.76 cents in free cash flow.

What is the current Forward P/E ratio for Dolby Laboratories Inc (DLB) as of Dec 15 2025?

As of Dec 15 2025, Dolby Laboratories Inc (DLB) has a Forward P/E ratio of 15.86. This means the market is willing to pay $15.86 for every dollar of Dolby Laboratories Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Dolby Laboratories Inc (DLB) as of Dec 15 2025?

As of Dec 15 2025, Dolby Laboratories Inc (DLB) has a Forward P/S ratio of 4.56. This means the market is valuing DLB at $4.56 for every dollar of expected revenue over the next 12 months.

DLB Valuation