Dolby LaboratoriesFRA:FUO +0.22%73 Operating Margin % is 29.10% as of Mar. 2026, which is 40% above its 10-year median of 20.77. GuruFocus rates FRA:FUO with a GF Score™ of 73/100 and a GF Value™ of €73.34 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,070 Business Services companies, Dolby Laboratories ranks better than 86.17% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Dolby Laboratories Operating Margin % Related Terms
Dolby Laboratories Operating Margin % Historical Data
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The historical data trend for Dolby Laboratories's Operating 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: Operating Margin % Comparison
For the Specialty Business Services subindustry, Dolby Laboratories's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Dolby Laboratories's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dolby Laboratories's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Dolby Laboratories's Operating Margin % for the fiscal year that ended in Sep. 2025 is calculated as
* 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.
Dolby Laboratories (FRA:FUO) has a Operating Margin % of 29.10% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Dolby Laboratories and its competitors. This is 40% above median its historical median of 20.77. Over the past decade, Dolby Laboratories' Operating Margin % has ranged from 17.33 to 26.60. According to the industry distribution chart, Dolby Laboratories ranks #148 out of 1070 companies in the Business Services industry, placing it in the top 13.8%.
Is Dolby Laboratories' Operating Margin % too high?
Dolby Laboratories' current Operating Margin % of 29.10% is 40% above median its 10-year median of 20.77. Over the past 10 years, this metric has ranged from a low of 17.33 to a high of 26.60. The Business Services industry median Operating Margin % is 6.33. Dolby Laboratories' value of 29.10% is 359.7% above this industry median. Based on the distribution chart, Dolby Laboratories ranks #148 out of 1070 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' Operating Margin % compare to AMTM and UNF?
According to the Business Services industry distribution chart, Dolby Laboratories ranks #148 out of 1070 companies for Operating Margin %. This places Dolby Laboratories in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.33. Dolby Laboratories' value of 29.10% is 359.7% above this benchmark. Historically, Dolby Laboratories' own Operating Margin % has ranged from 17.33 to 26.60 over the past decade. While the company's 10-year median is 20.77 vs. the industry median of 6.33, 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 Operating Margin % for a Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dolby Laboratories's current Operating Margin % of 29.10% is 359.7% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Dolby Laboratories and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dolby Laboratories's current Operating Margin % is 29.10%, which is 40% above median its own 10-year median of 20.77. 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 €73.34, compared to a current price of €45.32 — trading 38.2% below its estimated fair value. The current Operating Margin % is 29.10%, which is 40% above median its 10-year median of 20.77 and 359.7% above the Business Services industry median of 6.33. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Dolby Laboratories (FRA:FUO), the current Operating Margin % is 29.10% 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 €45.32 is trading 38.2% below its estimated GF Value™ of €73.34.
GuruFocus considers Dolby Laboratories to be Significantly Undervalued.
Key valuation signals for FRA:FUO:
Operating Margin %: 29.10% (40% above median its 10-year median of 20.77)
GF Value™: €73.34 vs. price of €45.32 (38.2% below fair value)
Industry Position: 359.7% above the Business Services median (#148 of 1070)
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
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