Dolby Laboratories, Inc. (DLB) intrinsic value & 10-year financials

Dolby Laboratories, Inc. (DLB) has a Graham intrinsic value of $38.20 per share. At $59.95 on Oct 17, 2026, the stock trades 57% above that value. Over the last 10 fiscal years revenue grew 3.1% a year to $1.3B, with an average return on invested capital of 12.2%.

Graham intrinsic value
$38.20
Share price (Oct 17, 2026)
$59.95
Price vs Graham value
57% above
Market cap
$5.8B
Revenue (FY2025)
$1.3B
Revenue growth (10-yr CAGR)
3.1%
ROIC (10-yr avg)
12.2%
Free cash flow (FY2025)
$435.9M

DLB 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $1.3B $255.0M $2.62 $435.9M 19.6% 11.2%
FY2024 $1.3B $261.8M $2.69 $297.2M 20.3% 11.9%
FY2023 $1.3B $200.7M $2.05 $336.7M 16.6% 10.5%
FY2022 $1.3B $184.1M $1.81 $270.6M 16.5% 11.4%
FY2021 $1.3B $310.2M $2.97 $393.3M 26.9% 21.6%
FY2020 $1.2B $231.4M $2.25 $277.5M 18.8% 14.4%
FY2019 $1.2B $255.2M $2.44 $231.4M 20.7% 15.4%
FY2018 $1.1B $122.2M $1.14 $279.4M 28.4% 6.9%
FY2017 $1.1B $201.8M $1.95 $271.4M 23.0% 9.5%
FY2016 $1.0B $185.9M $1.81 $256.1M 22.6% 9.3%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

Dolby Laboratories, Inc. has demonstrated mature, steady growth, with revenue compounding at 3.1% annually over the past decade.

Dolby Laboratories, Inc. returns on capital have been average, hovering around 13.8% ROIC over the decade.

Dolby Laboratories, Inc. has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, Dolby Laboratories, Inc. is modeled at 4.2% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $38.20 per share.

DLB stock: frequently asked questions

What is the intrinsic value of Dolby Laboratories, Inc. (DLB) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 4.2% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, DLB's intrinsic value is about $38.20 per share.

Is DLB stock undervalued?

At $59.95 (close on Oct 17, 2026), DLB trades 57% above its Graham value of $38.20. On Graham's terms the shares look fully priced. A formula is a starting point for research, not a recommendation.

How fast has Dolby Laboratories, Inc. grown?

Revenue went from $1.0B in fiscal 2016 to $1.3B in fiscal 2025, a compound annual growth rate of 3.1%. Net income was $255.0M in fiscal 2025.

Does Dolby Laboratories, Inc. generate free cash flow?

Dolby Laboratories, Inc. generated $435.9M of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 10 of the last 10 reported years.

What is DLB's return on invested capital?

Average ROIC over the last 10 fiscal years was 12.2%, and average return on equity was 9.6%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this DLB data come from?

From Dolby Laboratories, Inc.'s annual 10-K filings on SEC EDGAR, most recently filed Jul 30, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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