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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2045
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Trading
$6.3B
Kevin J. Yeaman
Dolby Laboratories, Inc. creates audio and imaging technologies that transform entertainment and communications at the cinema, DTV, transmissions and devices, mobile devices, OTT video and music services, and home entertainment devices. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications. Dolby also designs and manufactures digital cinema servers, cinema processors, amplifiers, loudspeakers, and hardware components.
Headcount
2.3K
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = DLB ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$DLB Dolby Laboratories, Inc. | 50 | 76 | 60 | 17 | 23.5x | 15.8x | 10.0% | 8.2% | 88.1% | 21.1% | 18.6% | 20.0% | 2.1% | 23.0x | $6.3B | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
Dolby Laboratories, Inc. (DLB) receives a "Reduce" rating with a composite score of 49.7/100. It ranks #2045 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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HQ Base
Wilmington, California
Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
High profitability & efficiency — strong quality floor supports entry
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for DLB.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 76 | 94 | -18DRAG |
| MOMENTUM | 17 | 9 | +8ALPHA |
| VALUATION | 60 | 83 | -23DRAG |
| INVESTMENT | 50 | 93 | -43DRAG |
| STABILITY | 58 | 64 | -6DRAG |
| SHORT INT | 44 | 43 | +1NEUTRAL |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 10.0% (sector 9.0%)
GM 88% vs sector 78%, OM 21% vs sector 18%
Capital turnover N/A, R&D intensity 19.9%
Rev growth 20%, 11yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Dolby Laboratories, Inc. (DLB) as a Reduce with a composite score of 49.7/100 at a current price of $63.76. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Dolby Laboratories, Inc. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 49.7/100 places it at rank #2045 in our full universe.
Narrow
Low
Exemplary
Fair Value
Gross margins of 88% signal strong pricing power.
Stable competitive position in a defensive sector.
Weak momentum suggests persistent institutional selling pressure.
Vulnerability to macroeconomic shocks and interest rate volatility.
Dolby Laboratories, Inc. represents a reduce based on multi-factor quantitative performance.
Dolby Laboratories, Inc. receives a Reduce rating from our analysis, with a composite score of 49.7/100 and 2 out of 5 stars, ranking #2045 out of 7,333 stocks. DLB's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
DLB earns a quality score of 76/100, indicating above-average business quality. The company reports a return on equity of 10.0% (sector avg: 9.0%), gross margins of 88.1% (sector avg: 77.7%), net margins of 18.6% (sector avg: 21.9%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
DLB's value score of 60/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 23.46x, an EV/EBITDA of 15.78x, a P/B ratio of 2.35x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
With an investment score of 50/100, DLB exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of 20.0% vs. a sector average of 10.7% and a return on assets of 8.2% (sector: 1.3%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
Dolby Laboratories, Inc. is experiencing notably weak momentum with a score of just 17/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at 20.0% year-over-year, while a beta of 0.81 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
With a stability score of 58/100, DLB exhibits average financial resilience. Key stability metrics include a beta of 0.81 and a debt-to-equity ratio of 23.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 44/100 for DLB suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 23.00x). With a $6.3B market cap (mid-cap), Dolby Laboratories, Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
DLB pays a solid dividend yield of 2.1%, contributing an income component to total returns. This compares to a sector average dividend yield of 2.0%. This moderate yield suggests a balance between returning capital to shareholders and retaining earnings for reinvestment — a common profile among quality compounders.
Dolby Laboratories, Inc. is a mid-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2045 of 7,333 overall (72nd percentile). Key comparisons include ROE of 10.0% exceeding the 9.0% sector median and operating margins of 21.1% above the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While DLB currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
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Improvement in Momentum (17) would have the largest impact on the composite score.
EV/EBITDA 103% ABOVE SECTOR MEDIAN
ROE 11% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 13% ABOVE SECTOR MEDIAN (FAVORABLE)
Dolby Laboratories CEO Kevin J. Yeaman sold 36,699 shares worth approximately $2.5 million on November 24, 2025. Despite the sale, he retains significant direct and indirect ownership. The company reported mixed fiscal year results with modest revenue growth and forecasts continued growth in fiscal 2026.
Stocks fell ahead of Nvidia's earnings report, with the tech-heavy Nasdaq leading losses. The dollar and gold rose amid heightened risk aversion, while natural gas surged. Bitcoin reached a new record high, defying the risk-off sentiment.
Dolby Laboratories (DLB) inks a definitive agreement to acquire GE Licensing from GE Aerospace for $429 million in cash.
Software is rapidly reducing operating expenses for businesses. In the past, the undeniable tailwinds fueling SaaS companies led to lofty valuation multiples that made it easier to raise capital. But this was a double-edged sword as the high prices exposed them to big drawdowns, and unfortunately, the industry has tumbled by 22% over the last six months. This performance is a stark contrast from the S&P 500’s 6% gain.
Above 50MA
37.18%
Net New Highs
+51081