Dolby Laboratories Inc Dossier
|
SectorIndustrials IndustrySpecialty Business Services Beta (adjusted)0.88 Intrinsic Value $68.06median of 6 methods · middle span $49-$76based on filings through 26 Jun 2026 Market Price $59.06Price as of 1 Oct 2026 UndervaluedIntrinsic value is 15% above the market price −50% · IV below pricenear fair value ±15%IV above price · +50% Data confidence Sign in to view data confidence Market Cap $5.5B Enterprise Value $4.9B Shares Outstanding 95.8M diluted Moat Rating Narrow Next Earnings Date18 Nov 2026 Last ex-dividend11 Aug 2026 All prices and values are periodic snapshots, not live quotes. Source dates are shown for reference. ThesisStreet consensus, scenarios, merits, risks, and invalidation triggers Thesis Summary Dolby Laboratories operates a highly resilient, high-margin software-like licensing model deeply embedded in the global content creation and consumption ecosystem. With gross margins consistently near 90% on a non-GAAP basis and a fortress balance sheet featuring zero structural debt, Dolby is well-positioned to weather cyclical hardware downturns. Growth is increasingly driven by expansion into high-value adjacent markets, particularly automotive infotainment (partnering with over 20 OEMs) and mobile/streaming platforms. The stock currently trades at an attractive valuation relative to its historical multiples and intrinsic value, offering a compelling risk-reward profile with robust capital returns through dividends and share buybacks. This section is the 12-month view: analyst targets and the probability-weighted scenarios built from them. The intrinsic value at the top of this page answers a different question: what the business is worth today. Street view · analyst 12-month targets Low · most bearish analyst$62.00 Mean target$79.00 High · most bullish analyst$90.00 Our research · scenarios, merits, risks, and invalidation triggersResearch as of 18 Sep 2026 Scenarios · 12-month scenario targets Bear CaseDownside scenario $60.6015% Severe macroeconomic weakness severely compresses global consumer electronics shipments, overriding the protection of minimum volume commitments. Competitive technologies (e.g., open-source alternatives) gain traction, limiting Dolby's pricing power and slowing automotive adoption. Base CaseCentral scenario $79.0060% Matches the consensus meanDolby successfully executes its FY2026 guidance, maintaining steady licensing revenue despite mature PC and smartphone markets. Continued expansion in automotive partnerships and steady share repurchases support moderate earnings growth and multiple expansion toward conservative analyst targets. Bull CaseUpside scenario $112.0025% Accelerated adoption of Dolby Atmos and Dolby Vision in the automotive sector and mainstream streaming platforms drives high-margin licensing revenue above expectations. Multiple expansion occurs as the market recognizes the stability of Dolby's recurring IP revenue, pushing the stock toward historical premium valuation levels. Scenarios are anchored to street consensus at the research date, with our probabilities and rationale. Key Investment Merits
Key Investment Risks
Thesis Invalidation Triggers
All scenarios are estimates and subject to change. Past performance is not indicative of future results. Quality Pillars MembersThis section is available to registered members. Create a free account or sign in to unlock the full breakdown. Explore this dossierValuationIntrinsic value, the six-method breakdown, peer medians, and your assumptions sandbox.Financial SnapshotRevenue, profitability, returns, balance sheet, dividends, and the filing-level detail.Qualitative AnalysisBusiness overview, strategic initiatives, and mergers, acquisitions & partnerships.Outlook & Key DatesForward estimates, reporting calendar, and the monitoring framework. |