NYSE: DLB · Application Software
Dolby Laboratories (DLB) fair value: undervalued or overvalued?
As of 31 Oct 2026, Faircurve's model values Dolby Laboratories (DLB) at $63.30 a share. The stock last closed at $64.82, which puts the model's fair value 2.3% below the price. On the model's bands that reads as Fairly valued.
Revalued . Price is the close of 5 Nov 2026. Dolby Laboratories, Inc.
The report adds the live price, the chart against the range the options market prices, the next earnings date and the analysts' consensus. No account needed.
This week, in three parts
What happenedThe run of 31 Oct 2026 moved the fair value from $66.19 to $63.30 (-4.4%). The peer group changed: most of the move.
What the model makes of itThe price of $64.82 is 2.3% above it: Fairly valued, on a medium evidence grade.
What's nextReports on 17 Nov 2026. Options expiring after the report price a move of about 10% either way. On the model's Quality Momentum list since 4 Nov 2026 (a strategy with a proving record). The next weekly run is on Saturday 7 Nov 2026.
What price range does the model give DLB?
The calibrated range for DLB over 63 trading days is $55.69 to $78.10. It sits around the last close, and its width comes from the volatility that DLB's own options imply (51% a year), calibrated weekly against realised prices (n = 6,661 past valuations, refreshed 31 Oct 2026). Ranges built this way held the price 60% of the time at this horizon. The fair value is the model's opinion and rides beside the range. It is not the centre of it.
The model's own simulated range, from the 20th to the 80th percentile of its runs, is $50.18 to $79.47. In 54% of the simulations the fair value came out above the price the model ran on.
Faircurve Insights · 31 Oct 2026
Dolby Laboratories, Inc. develops pioneering audio and visual technologies designed to enhance entertainment and communication experiences across a broad spectrum of platforms.
Faircurve's model put the fair value of Dolby Laboratories at $63.30 a share on 31 Oct 2026, the midpoint of 2,000 simulations. The previous run, on 24 Oct 2026, gave $66.19, so the fair value moved -4.4%. In the model's own words, "The peer group changed: most of the move." The calibrated range over 63 trading days is $55.87 to $78.35. It is built around the price from the volatility the stock's own options imply, and calibrated weekly against realised prices across 6,661 past valuations, refreshed 31 Oct 2026. Ranges built this way held the price 60% of the time at this horizon. The model grades the evidence Medium. The grade looks at how complete the inputs are, how many comparable companies there are and how closely they agree, and how wide the range of outcomes is. It does not say whether the fair value is right.
The business scores 64 out of 100 on the model's overall quality measure, a composite of six factors scored against comparable companies. Balance sheet scores 100, with net debt to EBITDA at -1.67x against a peer median of 1.29x. Earnings quality scores 90, with free cash flow to net income at 1.52x against a peer median of 1.33x. Growth quality scores 43, with trailing revenue growth at 5.9% against a peer median of 10.3%. The model compares it with Pegasystems Inc., RingCentral, Inc., Lyft, Inc., Duolingo, Inc., Commvault Systems, Inc., Clear Secure, Inc., AppFolio Inc. and InterDigital, Inc.
Written from the figures on this page for the 31 Oct 2026 valuation and checked by rule before publishing: every number is one printed here, no forecast, no instruction. The price, the gap and the verdict are the page's own and change daily. Not a recommendation.
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When does DLB report earnings, and how has the stock reacted?
Dolby Laboratories's next earnings report is scheduled for 17 Nov 2026. Companies can move their dates.
Options prices on 30 Oct 2026 imply a move of about 9.5% in either direction through the nearest expiry, about 20 days out, a window that includes the report. That is the size the market is pricing, not a direction. DLB's 30 day implied volatility works out to about 14.7% over one month.
Around its last 8 reports: what the options market priced, and what followed
Each move runs from the last close before the report to the first close after it, so it covers companies that report before the open and after the close. The median size across DLB's last 8 reports, ignoring direction, was 8.0%.
How does DLB score on business quality?
Dolby Laboratories's overall quality score is 64 out of 100. Each factor below is a score against comparable companies, not a percentile of the metric beside it.
| Factor | Score (0 to 100) | Headline measure | Peer median |
|---|---|---|---|
| ProfitabilityReturn on invested capital against the peer group, with a bonus for an improving trend. | 56 | 10.3%ROIC | 13.3% |
| Earnings qualityHow much of reported profit is cash: free cash flow to net income, and the accrual ratio (the share of earnings that is not cash). | 90 | 1.52xFCF / net income | 1.33x |
| Growth qualityTrailing revenue growth, forward growth from consensus, and the direction of analysts' rating changes. | 43 | 5.9%Revenue growth, trailing | 10.3% |
| Capital disciplineReinvestment efficiency (capital spending per unit of revenue) and net buybacks. | 59 | 4.6%Net buybacks / market value | 4.3% |
| Balance sheetNet debt to EBITDA and interest coverage. | 100 | -1.67xNet debt / EBITDA | 1.29x |
| StabilityDownside volatility of the EBITDA margin over the last five years. | 47 | 2.2 ptsEBITDA margin downside volatility, 5y | 0.8 pts |
How does DLB compare with similar companies?
The companies in application software closest to Dolby Laboratories in market value, each on the same model and the same date.
| Company | Last close | Model fair value | Gap | Model verdict |
|---|---|---|---|---|
| PEGA Pegasystems Inc. | $33.57 | $42.02 | +25.2% | Undervalued |
| RNG RingCentral, Inc. | $74.33 | $91.89 | +23.6% | Undervalued |
| LYFT Lyft, Inc. | $17.84 | $16.59 | -7.0% | Fairly valued |
| DUOL Duolingo, Inc. | $157.02 | $126.57 | -19.4% | Overvalued |
| CVLT Commvault Systems, Inc. | $157.62 | $163.57 | +3.8% | Fairly valued |
| YOU Clear Secure, Inc. | $56.50 | $45.00 | -20.4% | Overvalued |
| APPF AppFolio Inc. | $233.22 | $228.86 | -1.9% | Fairly valued |
| IDCC InterDigital, Inc. | $286.53 | $328.39 | +14.6% | Fairly valued |
What the comparable companies' multiples alone would give for DLB, the peer-implied price, is $72.88 a share on this run. The fair value weighs that against the company's own multiple.
Dolby Laboratories at a glance
Dolby Laboratories, Inc. develops pioneering audio and visual technologies designed to enhance entertainment and communication experiences across a broad spectrum of platforms.
- Market value
- $5.8B
- Sector
- Technology
- Industry
- Application Software
- Revenue expected, next twelve months
- $1.5B
- Consensus revenue growth, next fiscal year
- +5.3%
- Analysts with estimates
- 3
- Beta to the US market
- 0.52
- First valued by Faircurve
- 11 Jul 2026
At the close of 5 Nov 2026, 56.0% of the 1,065 graded US stocks the model covers traded below the model's fair value. DLB was not among them.
How the fair value is worked out: the model prices Dolby Laboratories on the value of the whole business, debt included, against the operating profit analysts expect next year (forward EV/EBITDA), runs 2,000 simulations across its inputs and takes the midpoint. The full method is documented here.
What changed in the latest valuation?
On 24 Oct 2026 the model's fair value for DLB was $66.19. As of 31 Oct 2026 it is $63.30, a change of -4.4%. The peer group changed: most of the move. The model revalues every stock it covers each week, and again after an earnings report.
Questions about Dolby Laboratories's valuation
Is Dolby Laboratories stock undervalued or overvalued?
On Faircurve's model, DLB reads as Fairly valued as of 31 Oct 2026. The model's fair value is $63.30 a share against a last close of $64.82, a gap of -2.3%.
What is DLB's fair value?
$63.30 a share as of 31 Oct 2026, the midpoint of 2,000 simulations. The model's own 20th to 80th percentile range is $50.18 to $79.47.
What price range does the model give DLB?
$55.69 to $78.10 over 63 trading days. Ranges built this way held the price 60% of the time across 6,661 past valuations, refreshed 31 Oct 2026.
When does Dolby Laboratories report earnings next?
The next report is scheduled for 17 Nov 2026. Companies can move their dates.
How much has DLB moved on past earnings reports?
Across its last 8 reports the median two session move was 8.0%, ignoring direction. The largest was +14.9% around the report of 19 Nov 2024.
How confident is the model in this valuation?
The model's evidence grade for DLB is medium. The grade looks at how complete the inputs are, how many comparable companies there are and how closely they agree, and how wide the range of outcomes is. It is not a probability that the fair value is right, or that the price reaches it.
The model's own ideas on DLB
The model has an idea open on DLB under Quality Momentum since 4 Nov 2026, a strategy with a proving record. Signed-in readers see the rule each idea runs on, the floor and the exit level the model set and its time limit, and the model's closed ideas on DLB with their outcomes. A free account is enough.