Is Dolby Laboratories, Inc. overvalued or undervalued?

As of 1 May 2025, the valuation grade for Dolby Laboratories, Inc. has moved from very attractive to attractive. The company is currently considered fairly valued. Key ratios include a P/E ratio of 27, an EV to EBITDA of 17.08, and a PEG ratio of 2.73. Compared to peers, Dolby's P/E ratio of 26.53 is more favorable than Duolingo, Inc.'s significantly high P/E of 221.64, while Informatica, Inc. shows a much higher EV to EBITDA at 29.83.
Despite the recent stock performance lagging behind the S&P 500, with a year-to-date return of -6.56% compared to the index's 2.44%, Dolby's financial metrics suggest it is positioned well within its industry. Overall, the combination of its ratios and peer comparisons indicates that while Dolby is not undervalued, it remains a stable investment in a competitive landscape.