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Upturn AI Summary - About
Dolby Laboratories(DLB)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
Upturn Advisory & Investor View for DLB
11/13/2026: DLB (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Dolby Laboratories is a well-established technology firm that generates high-margin revenue by licensing industry-standard audio and imaging technologies like Dolby Atmos and Dolby Vision. The company has a leading position in the entertainment ecosystem, deeply integrated into cinema, home theater, and mobile platforms. Its investment story centers on the continued expansion of these technologies into automotive and gaming sectors. Investors should monitor risks related to consumer electronics demand cycles and potential competition from open-source alternatives. With a history of stable dividends and a strong balance sheet, Dolby remains a compelling candidate for value-oriented and income-seeking investors looking for exposure to foundational media infrastructure.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Dolby offers steady growth potential linked to tech adoption, though it lacks the explosive growth characteristic of early-stage software companies. |
| Momentum investor | Weak fit | The stock tends to trade based on long-term adoption cycles rather than short-term price-action momentum. |
| Value investor | Strong fit | Dolby often trades at valuations that reflect its stable cash-generating intellectual property business. |
| Dividend investor | Strong fit | A history of consistent dividend payments and strong free cash flow make it attractive for income-focused portfolios. |
| Low-risk investor | Strong fit | The company's strong balance sheet and established industry position provide a degree of downside protection. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | The stock is susceptible to fluctuations in the consumer electronics sector. |
| Valuation risk | Medium | Market expectations for growth in new verticals can occasionally lead to valuation premiums. |
| Competition risk (IP/Standards) | Medium | The rise of alternative audio/visual codecs and open standards could erode licensing power. |
| Business quality | Strong | The company possesses a deep moat through its established technical standards and patent portfolio. |
| Dividend income | Low | The company has a consistent dividend policy that provides reliable, albeit modest, income. |
| Execution risk | Medium | Successfully expanding into automotive and mobile requires complex partnerships and long sales cycles. |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 6.05B USD | Price to earnings Ratio 27.49 | 1Y Target Price 79 |
Price to earnings Ratio 27.49 | 1Y Target Price 79 | ||
Volume (30-day avg) 639.3K shares | Beta 0.78 | 52 Weeks Range 47.98 - 69.11 | Updated Date 11/12/2026 |
52 Weeks Range 47.98 - 69.11 | Updated Date 11/12/2026 | ||
Dividends yield (FY) 2.23% | Basic EPS (TTM) 2.35 |
Sector & Industry Intelligence
Sector
Industrials
Constructive- Sentiment
- Bullish
- Momentum
- BUY Breadth Improving
- BUY participation
- 39.5%
- Active BUY / eligible
- 30 / 76
- 30-Day BUY Count Change
- +12
- Market state
- Bullish
More qualifying stocks are receiving or maintaining BUY advisories, indicating improving market participation.
Industry
Specialty Business Services
- BUY participation
- 66.7%
- Active BUY / eligible
- 2 / 3
- 30-Day BUY Count Change
- +2
Eligible universe: 3 stocks.
Sector signal summarizes BUY breadth conditions for the sector. It does not override this stock’s BUY, SELL, or PASS advisory.
Price Behavior

Flat / Range-Bound
The stock price has been trading within a narrow range with minimal directional movement.

Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -35.44% | Avg. Invested days 26 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Licensing | Revenue from licensing Dolby Atmos, Dolby Vision, and other audio/visual standards to manufacturers. | This is the core business that generates high-margin, recurring revenue through patent usage. |
| Products and Services | Professional hardware for cinema and media production houses. | This segment provides support for the company's ecosystem by ensuring the professional creation of Dolby-standard content. |
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 2026-11-17 | When After Market | Estimate 0.91 | Actual - |
Profitability
Profit Margin 16.7% | Operating Margin (TTM) 19.33% |
Management Effectiveness
Return on Assets (TTM) 5.15% | Return on Equity (TTM) 8.76% |
Valuation
Trailing PE 27.49 | Forward PE 14.06 | Enterprise Value 5.43B | Price to Sales(TTM) 4.47 |
Enterprise Value 5.43B | Price to Sales(TTM) 4.47 | ||
Enterprise Value to Revenue 4.01 | Enterprise Value to EBITDA 14.88 | Shares Outstanding 59.42M | Shares Floating 58.76M |
Shares Outstanding 59.42M | Shares Floating 58.76M | ||
Percent Insiders 1.87 | Percent Institutions 107.13 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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