Dolby LaboratoriesFRA:FUO -0.79%73 ROE % is 14.66% as of Mar. 2026, which is 48% above its 10-year median of 9.92. GuruFocus rates FRA:FUO with a GF Score™ of 73/100 and a GF Value™ of €72.44 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,058 Business Services companies, Dolby Laboratories ranks better than 55.48% on this metric.
The historical rank and industry rank for Dolby Laboratories's ROE % or its related term are showing as below:
FRA:FUO'
s ROE % Range Over the Past 10 Years
Min: 1.86 Med: 9.92 Max: 12.33
Current: 9.36
During the past 13 years, Dolby Laboratories's highest ROE % was 12.33%. The lowest was 1.86%. And the median was 9.92%.
FRA:FUO's ROE % is ranked better than 55.48% of 1058
companies
in the Business Services industry
Industry Median: 8.095
vs FRA:FUO: 9.36
Dolby Laboratories (FRA:FUO) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Dolby Laboratories ROE % Related Terms
Dolby Laboratories ROE % Historical Data
* Premium members only.
The historical data trend for Dolby Laboratories's ROE % 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.
For the Specialty Business Services subindustry, Dolby Laboratories's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Business Services Industry
For the Business Services industry and Industrials sector, Dolby Laboratories's ROE % distribution charts can be found below:
* The bar in red indicates where Dolby Laboratories's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Dolby Laboratories (FRA:FUO) has a ROE % of 14.66% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Dolby Laboratories and its competitors. This is 48% above median its historical median of 9.92. Over the past decade, Dolby Laboratories' ROE % has ranged from 1.86 to 12.33. According to the industry distribution chart, Dolby Laboratories ranks #471 out of 1058 companies in the Business Services industry, placing it in the top 44.5%.
Is Dolby Laboratories' ROE % too high?
Dolby Laboratories' current ROE % of 14.66% is 48% above median its 10-year median of 9.92. Over the past 10 years, this metric has ranged from a low of 1.86 to a high of 12.33. The Business Services industry median ROE % is 8.10. Dolby Laboratories' value of 14.66% is 81.1% above this industry median. Based on the distribution chart, Dolby Laboratories ranks #471 out of 1058 companies in the Business Services industry, which is above the industry midpoint. 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' ROE % compare to AMTM and UNF?
According to the Business Services industry distribution chart, Dolby Laboratories ranks #471 out of 1058 companies for ROE %. This puts Dolby Laboratories in the upper half of its industry. The industry median ROE % is 8.10. Dolby Laboratories' value of 14.66% is 81.1% above this benchmark. Historically, Dolby Laboratories' own ROE % has ranged from 1.86 to 12.33 over the past decade. While the company's 10-year median is 9.92 vs. the industry median of 8.10, 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 ROE % for a Business Services company?
The median ROE % among Business Services companies is 8.10, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Dolby Laboratories's current ROE % of 14.66% is 81.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Dolby Laboratories and its competitors. For the Business Services industry, the median ROE % is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dolby Laboratories's current ROE % is 14.66%, which is 48% above median its own 10-year median of 9.92. 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 €72.44, compared to a current price of €45.48 — trading 37.2% below its estimated fair value. The current ROE % is 14.66%, which is 48% above median its 10-year median of 9.92 and 81.1% above the Business Services industry median of 8.10. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Dolby Laboratories (FRA:FUO), the current ROE % is 14.66% 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 €45.48 is trading 37.2% below its estimated GF Value™ of €72.44.
GuruFocus considers Dolby Laboratories to be Significantly Undervalued.
Key valuation signals for FRA:FUO:
ROE %: 14.66% (48% above median its 10-year median of 9.92)
GF Value™: €72.44 vs. price of €45.48 (37.2% below fair value)
Industry Position: 81.1% above the Business Services median (#471 of 1058)
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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