Stock analysis · Bull Rankings model

DLB analysis

Dolby Laboratories, Inc.Specialty Business Services. Scored on the same transparent model behind the daily rankings.

DLB
Dolby Laboratories, Inc. · Specialty Business Services
FCF$345mC
Rev+5.9%C+
D/E0.02A
P/E27.8xB
PEG1.29B
64.8Score
$65.27$6.1B
1Y Target$79.00Analyst consensus · 3 analysts
5Y Target$115.66Compound horizon
10Y Target$171.58Long-dated conviction
FCF$345mTTM · 06/26
C
FCF $345m — modest; watch for margin expansion · TTM computed from 4 most-recent quarters (TTM · 06/26).
Rev+5.9%FY YoY
C+
Revenue +5.9% — steady but below market-beating range · Computed from last two annual revenue figures (FY YoY).
D/E0.02
A
D/E 0.02 — least levered decile in Industrials (≈10th pctile)
P/E27.8x
B
P/E 27.8 — near the Industrials median (≈60th pctile)
PEG1.29
B
PEG 1.29 — acceptable premium for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 64.8
Quality73.6
Growth65.0
Value56.9
Why this score
  • Raising its dividend
Entry · Margin of safety
52-week rangeMid-range
13% off the 12-month high
vs DCF fair value6% belowest. fair value ~$69
What the price assumes: free cash flow compounding at ~3% a year for the next decade — vs the ~6% a year our model projects from current growth and analyst estimates.

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Specialty Business Services · market cap $6.1b. 13% off the 52-week high of $75.39. 3 sell-side analysts publish a mean 1-yr target of $79.00 (implying +21% upside).
Moat
Net margin 17% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. FCF converts 152% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
Horizon
1-3 yr $79.00 (3-analyst consensus) — fundamentals + valuation re-rating. 5 yr $115.66 at ~12% CAGR — compounding case rests on the competitive position widening. 10 yr $171.58 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

DLB vs the Top Picks average

PillarDLBBook avgDiff
Quality0.740.84-0.10
Growth0.650.84-0.19
Value0.570.78-0.21

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
-7.1 over 47 daily scores
From 71.9 (Jun 22) → 64.8 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change+0.2%
90-day change-0.1%
Forward EPS estimate$4.60

Over the last 90 days, what analysts expect DLB to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
30
Position size
$1,958
3.9% of portfolio
Stop price
$48.95
25% below $65.27
$ at risk if stopped
$489.52
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Dolby Laboratories, Inc. (DLB): score, valuation & FAQ

Dolby Laboratories, Inc. (DLB) is a Specialty Business Services company that scores 64.8 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (A). On valuation, DLB sits about 6% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 3% annual free-cash-flow growth over the next decade.

Is DLB a good stock to buy?

Bull Rankings scores DLB 64.8 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by D/E (A). A score is a quantitative screen of Dolby Laboratories, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does DLB score 64.8 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). DLB earns its highest marks on D/E (A). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is DLB overvalued or undervalued?

Based on $65.27, DLB sits about 6% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 3% annual free-cash-flow growth over the next decade. It trades at a 27.8x P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in DLB?

Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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