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Dolby Laboratories (DLB)



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Upturn Advisory Summary
08/28/2025: DLB (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $103
1 Year Target Price $103
2 | Strong Buy |
2 | Buy |
0 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -35.46% | Avg. Invested days 28 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.97B USD | Price to earnings Ratio 26.62 | 1Y Target Price 103 |
Price to earnings Ratio 26.62 | 1Y Target Price 103 | ||
Volume (30-day avg) 4 | Beta 0.9 | 52 Weeks Range 67.20 - 88.52 | Updated Date 08/28/2025 |
52 Weeks Range 67.20 - 88.52 | Updated Date 08/28/2025 | ||
Dividends yield (FY) 1.81% | Basic EPS (TTM) 2.71 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-07-31 | When - | Estimate 0.71 | Actual 0.78 |
Profitability
Profit Margin 19.62% | Operating Margin (TTM) 14.92% |
Management Effectiveness
Return on Assets (TTM) 5.86% | Return on Equity (TTM) 10.5% |
Valuation
Trailing PE 26.62 | Forward PE 17.61 | Enterprise Value 6253980505 | Price to Sales(TTM) 5.18 |
Enterprise Value 6253980505 | Price to Sales(TTM) 5.18 | ||
Enterprise Value to Revenue 4.64 | Enterprise Value to EBITDA 16.13 | Shares Outstanding 61184100 | Shares Floating 60412507 |
Shares Outstanding 61184100 | Shares Floating 60412507 | ||
Percent Insiders 1.35 | Percent Institutions 98.22 |
Upturn AI SWOT
Dolby Laboratories

Company Overview
History and Background
Dolby Laboratories was founded in 1965 by Ray Dolby in London, England. It began with noise reduction systems and later became renowned for audio encoding and compression technologies used in cinema, broadcasting, and consumer electronics.
Core Business Areas
- Licensing: Dolby licenses its audio and imaging technologies to manufacturers of consumer electronics, PCs, mobile devices, cinema products, and gaming devices. This segment generates a significant portion of Dolby's revenue.
- Products and Services: Dolby provides products and services, including Dolby Cinema, Dolby Voice, and Dolby Atmos for cinemas. This includes installation, maintenance, and certification.
Leadership and Structure
Kevin Yeaman is the CEO. The company has a board of directors overseeing strategic direction. Organizational structure includes departments for technology licensing, product development, sales, and marketing.
Top Products and Market Share
Key Offerings
- Dolby Atmos: An immersive audio technology used in cinemas, home theaters, and mobile devices. Market share is substantial in premium audio, but precise figures are difficult to obtain due to the nature of licensing agreements. Competitors include DTS:X and Auro-3D.
- Dolby Vision: A high dynamic range (HDR) video technology. Market share is significant in premium HDR content and devices. Competitors include HDR10+.
- Dolby Cinema: A premium cinema experience combining Dolby Atmos and Dolby Vision. Revenue is derived from cinema partners who implement the technology. Competitors include IMAX and other premium cinema formats.
Market Dynamics
Industry Overview
The audio and imaging technology industry is competitive, with increasing demand for immersive experiences in entertainment and communication. Growth is driven by advancements in streaming, gaming, and virtual reality.
Positioning
Dolby is positioned as a leader in audio and imaging technologies, with a strong brand reputation and extensive licensing agreements. Its competitive advantage lies in its patented technologies and established relationships with industry partners.
Total Addressable Market (TAM)
TAM is estimated in the billions of dollars, encompassing consumer electronics, cinema, broadcast, and streaming sectors. Dolby is well-positioned to capture a significant portion of this TAM through licensing and product offerings.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Extensive patent portfolio
- Established relationships with industry partners
- Leading position in audio and imaging technologies
Weaknesses
- Reliance on licensing revenue
- Exposure to cyclical consumer electronics market
- Potential impact of generic audio/video formats
- Vulnerability to counterfeiting
Opportunities
- Growth in streaming and digital content
- Expansion into new markets (e.g., VR/AR)
- Development of new audio and imaging technologies
- Partnerships with content creators and distributors
Threats
- Competition from alternative technologies
- Economic downturn affecting consumer spending
- Piracy and unauthorized use of technologies
- Changing consumer preferences
Competitors and Market Share
Key Competitors
- DTS (XPER)
- IMAX
- SONY (SNE)
Competitive Landscape
Dolby's competitive advantage lies in its brand recognition, extensive patent portfolio, and relationships with industry partners. Disadvantages include reliance on licensing revenue and exposure to the cyclical consumer electronics market.
Major Acquisitions
Millicast
- Year: 2020
- Acquisition Price (USD millions): 0
- Strategic Rationale: Adding Millicast technology to enhance Dolby.io's real-time media platform, enabling ultra-low latency streaming capabilities for a wide range of interactive experiences.
Growth Trajectory and Initiatives
Historical Growth: Dolby has experienced consistent growth driven by the adoption of its audio and imaging technologies in various markets.
Future Projections: Analyst projections indicate continued growth, driven by streaming, gaming, and emerging technologies like VR/AR. Specific forecasts would require access to analyst reports.
Recent Initiatives: Recent initiatives include expanding Dolby Atmos and Dolby Vision to more devices and content platforms, and focusing on partnerships within the entertainment industry.
Summary
Dolby Laboratories boasts a solid foundation due to its strong brand and technology licensing. While its reliance on consumer electronics exposes it to market fluctuations, its expansion into emerging technologies provides growth avenues. The company should cautiously manage competition and piracy to sustain its market position and enhance shareholder returns.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Analyst Estimates
- Market Research
Disclaimers:
The data and analysis provided are based on available information and estimates. Actual results may vary. This is not financial advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Dolby Laboratories
Exchange NYSE | Headquaters San Francisco, CA, United States | ||
IPO Launch date 2005-02-17 | President, CEO & Director Mr. Kevin J. Yeaman | ||
Sector Industrials | Industry Specialty Business Services | Full time employees 2080 | Website https://www.dolby.com |
Full time employees 2080 | Website https://www.dolby.com |
Dolby Laboratories, Inc. engages in the design and manufacture of audio, imaging, accessibility, and other hardware and software solutions primarily for application in the television, broadcast, and live entertainment industries in the United States and internationally. The company develops and licenses its audio technologies, such as AAC, HE-AAC, and extended HE-AAC, a digital audio codec solution; AVC, a digital video codec used in STBs, mobile devices, cameras, and broadcast television services and other products; and Dolby Atmos and Dolby Vision include encoding technologies that artists use to create more compelling and immersive audio and video experiences. Its audio technologies also include DD+, an advanced surround sound audio codec technology; Dolby AC-4, an audio codec that uses cutting edge compression; and HEVC, a next-generation digital video codec that compresses video. In addition, the company offers Dolby Cinemas, a premium large format cinemas that deliver a Dolby branded premium cinema offering with Dolby Vision, Dolby Atmos, and a Dolby theater design; Dolby.io, a next generation SaaS product of immersive, interactive, and social experiences with real-time engagement for live events, especially sports; and digital cinema servers, cinema processors, amplifiers, loudspeakers, and audio and imaging hardware and software products for the cinema, television, broadcast, communication, and entertainment industries. Further, it provides various services to support theatrical and television production for cinema exhibition, broadcast, and home entertainment. The company serves film studios, content creators, post-production facilities, and broadcasters. Dolby Laboratories, Inc. was founded in 1965 and is headquartered in San Francisco, California.

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