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Dolby Laboratories PE Ratio

: 38.73 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-08-12), Dolby Laboratories's share price is $80.18. Dolby Laboratories's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 was $2.07. Therefore, Dolby Laboratories's PE Ratio for today is 38.73.


The historical rank and industry rank for Dolby Laboratories's PE Ratio or its related term are showing as below:

DLB' s PE Ratio Range Over the Past 10 Years
Min: 9.98   Med: 25.54   Max: 216.45
Current: 38.64


During the past 13 years, the highest PE Ratio of Dolby Laboratories was 216.45. The lowest was 9.98. And the median was 25.54.


DLB's PE Ratio is ranked worse than
66.14% of 1459 companies
in the Software industry
Industry Median: 25.81 vs DLB: 38.64

Dolby Laboratories's Earnings per Share (Diluted) for the three months ended in Jun. 2022 was $0.39. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 was $2.07.

As of today (2022-08-12), Dolby Laboratories's share price is $80.18. Dolby Laboratories's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $2.07. Therefore, Dolby Laboratories's PE Ratio without NRI for today is 38.73.

During the past 13 years, Dolby Laboratories's highest PE Ratio without NRI was 216.45. The lowest was 9.98. And the median was 25.54.

Dolby Laboratories's EPS without NRI for the three months ended in Jun. 2022 was $0.39. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $2.07.

During the past 12 months, Dolby Laboratories's average EPS without NRI Growth Rate was -29.80% per year. During the past 3 years, the average EPS without NRI Growth Rate was 96.70% per year. During the past 5 years, the average EPS without NRI Growth Rate was 14.30% per year. During the past 10 years, the average EPS without NRI Growth Rate was -2.00% per year.

During the past 13 years, Dolby Laboratories's highest 3-Year average EPS without NRI Growth Rate was 96.70% per year. The lowest was -39.40% per year. And the median was 10.50% per year.

Dolby Laboratories's EPS (Basic) for the three months ended in Jun. 2022 was $0.40. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2022 was $1.99.


Dolby Laboratories PE Ratio Historical Data

The historical data trend for Dolby Laboratories's PE Ratio 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.

* Premium members only.

Dolby Laboratories Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.85 179.41 26.49 29.46 29.63

Dolby Laboratories Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 34.98 29.63 39.02 37.79 At Loss

Competitive Comparison

For the Information Technology Services subindustry, Dolby Laboratories's PE Ratio, along with its competitors' market caps and PE Ratio 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 PE Ratio Distribution

For the Software industry and Technology sector, Dolby Laboratories's PE Ratio distribution charts can be found below:

* The bar in red indicates where Dolby Laboratories's PE Ratio falls into.



Dolby Laboratories PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Dolby Laboratories's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=80.18/2.070
=38.73

Dolby Laboratories's Share Price of today is $80.18.
Dolby Laboratories's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.07.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Dolby Laboratories  (NYSE:DLB) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Dolby Laboratories PE Ratio Related Terms

Thank you for viewing the detailed overview of Dolby Laboratories's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Dolby Laboratories Business Description

Dolby Laboratories logo
Traded in Other Exchanges
Address
1275 Market Street, San Francisco, CA, USA, 94103-1410
Dolby Laboratories Inc develops audio and surround sound for cinema, broadcast, home audio systems, in-car entertainment systems, DVD players, games, televisions, and personal computers. The company generates three fourths of its revenue from licensing its technology to consumer electronics manufacturers around the world. The rest of revenue comes from equipment sales to professional producers and audio engineering services.
Executives
Revankar Shriram officer: SVP, Advanced Technology Group C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Prophet Tony A director 9 BERNICE STREET SAN FRANCISCO CA 94103
Couling John D officer: SVP, Entertainment C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Park Robert J officer: SVP & Chief Financial Officer C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Rollins Emily director C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Dagmar Dolby 2019 Trust Bb,dated July 22, 2019 10 percent owner 2515 SCOTT STREET SAN FRANCISCO CA 94115
Sud Anjali director C/O VIMEO INC. 555 WEST 18TH STREET NEW YORK NY 10011
Dagmar Dolby 2018 Trust Bb, Dated June 20, 2018 10 percent owner 2515 SCOTT STREET SAN FRANCISCO CA 94115
Nicholson Ryan officer: VP, Corporate Controller C/O DOLBY LABORATORIES INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Pendleton Todd officer: SVP, Chief Marketing Officer 1275 MARKET STREET SAN FRANCISCO CA 94103
Baker Giles officer: SVP, Consumer Entertainment 1275 MARKET STREET SAN FRANCISCO CA 94103
Dagmar Dolby 2016 Trust Bb, Dated March 23, 2016 10 percent owner 2515 SCOTT STREET SAN FRANCISCO CA 94115
Segars Simon director C/O DOLBY LABORATORIES, INC. 1275 MARKET STREET SAN FRANCISCO CA 94103
Marital Trust Under Dolby Family Trust Dated May 7, 1999 10 percent owner 2515 SCOTT STREET SAN FRANCISCO CA 94115
Dagmar Dolby Trust Under Dolby Family Trust Instrument Dated May 7, 1999 10 percent owner 2515 SCOTT STREET SAN FRANCISCO CA 94115

Dolby Laboratories Headlines

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