Latest Ratios: P/E Ratio 19.1x · EV/EBITDA 11.3x · 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 | $4.8B | $7.1B | $7.4B | $7.7B | $6.6B | $9.7B | $6.7B | $6.7B | $7.5B | $5.9B | $5.6B |
| Enterprise Value | $4.1B | $6.4B | $6.8B | $7.0B | $6.1B | $8.5B | $5.7B | $5.9B | $6.6B | $5.3B | $5.0B |
| P/E Ratio → | 19.10 | 27.63 | 28.11 | 40.44 | 35.99 | 31.13 | 28.88 | 26.14 | 61.38 | 29.50 | 29.99 |
| P/S Ratio | 3.54 | 5.23 | 5.78 | 5.95 | 5.30 | 7.55 | 5.76 | 5.37 | 7.10 | 5.49 | 5.42 |
| P/B Ratio | 1.85 | 2.68 | 2.96 | 3.26 | 2.95 | 3.71 | 2.74 | 2.88 | 3.41 | 2.77 | 2.81 |
| P/FCF | 11.11 | 16.40 | 24.76 | 22.97 | 25.64 | 24.60 | 24.34 | 31.15 | 28.05 | 21.77 | 40.21 |
| P/OCF | 10.13 | 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 | 11.33 | 17.59 | 19.40 | 19.44 | 18.91 | 19.50 | 18.27 | 15.48 | 24.82 | 15.35 | 15.84 |
| EV / EBIT | 15.54 | 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 | 2.6% | 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 | 5.2% | 3.6% | 3.6% | 2.5% | 2.8% | 3.2% | 3.5% | 3.8% | 1.6% | 3.4% | 3.3% |
| FCF Yield | 9.0% | 6.1% | 4.0% | 4.4% | 3.9% | 4.1% | 4.1% | 3.2% | 3.6% | 4.6% | 2.5% |
| Buyback Yield | 3.4% | 2.3% | 2.7% | 2.3% | 8.5% | 2.9% | 2.9% | 5.4% | 2.3% | 2.0% | 2.1% |
| Total Shareholder Yield | 6.0% | 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 |
Royalty-free codec adoption
According to current market data, DLB trades at a forward P/E of 12.41, which appears to discount the company's high-margin licensing model relative to peers like Qualcomm, suggesting that investors remain cautious about the long-term durability of its royalty streams in an increasingly open-source technology landscape.
The valuation gap between DLB and higher-multiple peers suggests the market is pricing in significant terminal value risk from royalty-free alternatives. While the forward P/E is modest, the PEG ratio of 6.60 indicates that current growth expectations are expensive, implying that the market requires more evidence of successful diversification into new verticals like automotive before re-rating the stock.
Based on reported financial statements, ROIC has fluctuated between 1.1% and 4.7% over the last ten quarters, indicating that the company's ability to compound returns on invested capital is currently hampered by the heavy R&D spending required to maintain its proprietary technology ecosystem against evolving industry standards.
The low ROIC relative to the company's high gross margins highlights the significant drag of fixed operating costs and the challenge of scaling new software-as-a-service initiatives. Investors should monitor whether the recent uptick in ROIC to 4.2% in 2026Q2 represents a sustainable improvement in capital allocation or merely a temporary benefit from favorable royalty timing.
As reported in recent filings, the company's cash conversion cycle remains elevated, peaking at 202 days in 2024Q3, which reflects the inherent inefficiencies of a licensing model dependent on the complex, lagged reporting cycles of global consumer electronics OEMs and the associated delays in cash collection.
The persistent DSO levels, often exceeding 130 days, suggest that the company lacks significant leverage over its large OEM partners, forcing it to carry substantial accounts receivable. This working capital intensity effectively ties up cash that could otherwise be deployed toward more aggressive growth initiatives or higher-yielding capital returns.
The P/E ratio is frequently misapplied to this business model because it fails to account for the significant non-cash amortization of intangible assets and the volatility of audit-driven royalty catch-up payments, which can distort the perceived earnings power of the company's core intellectual property licensing engine.
Analysts should instead prioritize free cash flow yield or EV/EBITDA, as these metrics better capture the underlying cash-generative capacity of the licensing business while stripping away the noise of accounting adjustments. Relying solely on P/E risks misinterpreting the company's true financial health during periods of heavy investment in new technology standards.
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 19.1x. The historical average is 27.1x. This places it at the 24th percentile of its historical range.
Dolby Laboratories, Inc.'s current EV/EBITDA is 11.3x. 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 19.1x. This is at the 24th 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 2.60% 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.