Dolby LaboratoriesFRA:FUO -2.71%73 Gross Margin % is 88.69% as of Mar. 2026, which is 0% above its 10-year median of 88.50. GuruFocus rates FRA:FUO with a GF Score™ of 73/100 and a GF Value™ of €73.42 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,007 Business Services companies, Dolby Laboratories ranks better than 91.16% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Dolby Laboratories had a gross margin of 88.69% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Dolby Laboratories Gross Margin % Related Terms
Dolby Laboratories Gross Margin % Historical Data
* Premium members only.
The historical data trend for Dolby Laboratories's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:FUO vs AMTM, UNF, AZZ: Gross Margin % Comparison
For the Specialty Business Services subindustry, Dolby Laboratories's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Dolby Laboratories Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Dolby Laboratories's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dolby Laboratories's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Dolby Laboratories (FRA:FUO) has a Gross Margin % of 88.69% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dolby Laboratories and its competitors. This is near median its historical median of 88.50. Over the past decade, Dolby Laboratories' Gross Margin % has ranged from 87.04 to 89.85. According to the industry distribution chart, Dolby Laboratories ranks #89 out of 1007 companies in the Business Services industry, placing it in the top 8.8%.
Is Dolby Laboratories' Gross Margin % too high?
Dolby Laboratories' current Gross Margin % of 88.69% is near median its 10-year median of 88.50. Over the past 10 years, this metric has ranged from a low of 87.04 to a high of 89.85. The Business Services industry median Gross Margin % is 34.50. Dolby Laboratories' value of 88.69% is 157.1% above this industry median. Based on the distribution chart, Dolby Laboratories ranks #89 out of 1007 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Dolby Laboratories has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dolby Laboratories' Gross Margin % compare to AMTM and UNF?
According to the Business Services industry distribution chart, Dolby Laboratories ranks #89 out of 1007 companies for Gross Margin %. This places Dolby Laboratories in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 34.50. Dolby Laboratories' value of 88.69% is 157.1% above this benchmark. Historically, Dolby Laboratories' own Gross Margin % has ranged from 87.04 to 89.85 over the past decade. While the company's 10-year median is 88.50 vs. the industry median of 34.50, Dolby Laboratories has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.50, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dolby Laboratories's current Gross Margin % of 88.69% is 157.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Dolby Laboratories and its competitors. For the Business Services industry, the median Gross Margin % is 34.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dolby Laboratories's current Gross Margin % is 88.69%, which is near median its own 10-year median of 88.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dolby Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Dolby Laboratories (FRA:FUO) is currently considered Significantly Undervalued. The stock's GF Value™ is €73.42, compared to a current price of €45.26 — trading 38.4% below its estimated fair value. The current Gross Margin % is 88.69%, which is near median its 10-year median of 88.50 and 157.1% above the Business Services industry median of 34.50. Dolby Laboratories' overall GF Score™ is 73/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Dolby Laboratories (FRA:FUO), the current Gross Margin % is 88.69% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Dolby Laboratories (FRA:FUO) Overvalued in 2026?
Based on GuruFocus' analysis, Dolby Laboratories stock appears to be undervalued.
The current stock price of €45.26 is trading 38.4% below its estimated GF Value™ of €73.42.
GuruFocus considers Dolby Laboratories to be Significantly Undervalued.
Key valuation signals for FRA:FUO:
Gross Margin %: 88.69% (near median its 10-year median of 88.50)
GF Value™: €73.42 vs. price of €45.26 (38.4% below fair value)
Industry Position: 157.1% above the Business Services median (#89 of 1007)
No single metric tells the full story. See the FRA:FUO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dolby Laboratories Inc. develops technologies that enhance audio and video capture, transmission, and playback, enabling high-quality experiences across movies, TV, music, sports, and more. The company designs and manufactures audio, imaging, accessibility, and related hardware and software mainly for cinema, including digital cinema servers and media encryption and packaging tools. It generates the majority of its revenue by licensing its technology, brand, and patents to device manufacturers and by selling cinema hardware and services. It operates as a single reportable segment, with revenue derived mainly from licensing and, to a lesser extent, from premium cinema technologies, across the United States and international markets.
73GF Score
Get the complete analysis for FRA:FUO
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:FUO has been successfully added to your 
