What is Dolby Laboratories, Inc. worth?
With the base-case assumptions below, a discounted cash flow model on Dolby Laboratories, Inc.'s reported free cash flow gives $80.08 per share. The share price was $58.56 on September 25, 2026, 27% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -2.0% | 10.0% | $52.27 | -11% |
| Base | 3.0% | 9.0% | $80.08 | +37% |
| Bull | 8.0% | 8.0% | $132.00 | +125% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $99.72 | $105.66 | $112.92 | $122.00 | $133.67 |
| 8.0% | $85.10 | $88.95 | $93.51 | $98.97 | $105.65 |
| 9.0% | $74.40 | $77.04 | $80.08 | $83.62 | $87.81 |
| 10.0% | $66.23 | $68.11 | $70.23 | $72.66 | $75.46 |
| 11.0% | $59.80 | $61.17 | $62.71 | $64.43 | $66.39 |
Where the presets come from
Base: years 1 to 5 grow at Dolby Laboratories, Inc.'s revenue growth rate over the last 5 fiscal years (3.0% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions