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Dolby Laboratories (DLB)



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Upturn Advisory Summary
09/12/2025: DLB (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $95.75
1 Year Target Price $95.75
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 6.85B USD | Price to earnings Ratio 26.36 | 1Y Target Price 95.75 |
Price to earnings Ratio 26.36 | 1Y Target Price 95.75 | ||
Volume (30-day avg) 4 | Beta 0.92 | 52 Weeks Range 67.64 - 88.52 | Updated Date 09/14/2025 |
52 Weeks Range 67.64 - 88.52 | Updated Date 09/14/2025 | ||
Dividends yield (FY) 1.83% | 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 - | When - | Estimate - | Actual - |
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 26.36 | Forward PE 17.42 | Enterprise Value 6186889575 | Price to Sales(TTM) 5.08 |
Enterprise Value 6186889575 | Price to Sales(TTM) 5.08 | ||
Enterprise Value to Revenue 4.59 | Enterprise Value to EBITDA 15.96 | Shares Outstanding 61184100 | Shares Floating 60482473 |
Shares Outstanding 61184100 | Shares Floating 60482473 | ||
Percent Insiders 1.35 | Percent Institutions 98.06 |
Upturn AI SWOT
Dolby Laboratories

Company Overview
History and Background
Dolby Laboratories was founded in 1965 by Ray Dolby in London, England. It initially focused on noise reduction systems for professional audio recording. Over time, Dolby expanded into consumer electronics and cinema sound technologies, becoming a leader in audio and imaging technologies.
Core Business Areas
- Licensing: Dolby licenses its audio and imaging technologies to manufacturers of consumer electronics, cinema equipment, and other devices. This is a significant revenue stream, licensing to many of the consumer devices we use in our day to day lives.
- Products and Services: Dolby offers products and services related to audio and imaging, including Dolby Atmos, Dolby Vision, and Dolby Voice. This extends to content creation with professional tools
Leadership and Structure
Dolby Laboratories is led by CEO Kevin Yeaman. The organizational structure is typical of a technology company, with departments focused on engineering, licensing, sales, marketing, and operations.
Top Products and Market Share
Key Offerings
- Dolby Atmos: Dolby Atmos is an immersive audio technology used in cinemas, home theaters, and mobile devices. While precise market share data is difficult to ascertain, Dolby Atmos is widely adopted. Competitors: DTS:X, Auro-3D.
- Dolby Vision: Dolby Vision is a high dynamic range (HDR) video technology used in TVs, streaming services, and cinemas. Again, precise figures vary, it is a leading HDR format. Competitors: HDR10+, HLG.
- Dolby Voice: Dolby Voice enhances meeting experiences for users of many of the top VCaaS offerings available. This is becoming a key revenue driver with hybrid and remote work becoming more popular. Competitors: Krisp, Nvidia Maxine
Market Dynamics
Industry Overview
The audio and imaging technology industry is characterized by rapid innovation, increasing consumer demand for high-quality experiences, and growing importance of content distribution platforms.
Positioning
Dolby Laboratories is a leader in audio and imaging technologies, with a strong brand reputation and a large portfolio of patents. Its competitive advantages include its technological expertise, licensing model, and relationships with key industry players.
Total Addressable Market (TAM)
The TAM for audio and imaging technologies is substantial, with estimates reaching hundreds of billions of dollars. Dolby is well-positioned to capture a significant portion of this market due to its established technologies and licensing model.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Extensive patent portfolio
- Established licensing model
- Technological expertise
- Strong relationships with industry partners
Weaknesses
- Dependence on licensing revenue
- Competition from alternative technologies
- Exposure to economic cycles
- Vulnerable to piracy
Opportunities
- Growth in streaming services
- Expansion into new markets (e.g., virtual reality)
- Development of new technologies
- Increasing adoption of immersive audio and video
Threats
- Emergence of competing technologies
- Decline in consumer electronics sales
- Increased piracy
- Economic downturns
Competitors and Market Share
Key Competitors
- DTS
- SONO
- XPER
Competitive Landscape
Dolby has a strong brand and technological advantage but faces competition from DTS and other companies offering alternative audio and imaging technologies.
Major Acquisitions
Millicast
- Year: 2020
- Acquisition Price (USD millions): 18.1
- Strategic Rationale: This acquisition expanded Dolby's presence in real-time communications and interactive streaming capabilities.
Growth Trajectory and Initiatives
Historical Growth: Historically, Dolby's growth has been driven by the adoption of its technologies in consumer electronics and cinema. Licensing revenue remains the primary driver.
Future Projections: Analyst estimates suggest continued growth in licensing revenue, particularly from streaming services and new technologies. Revenue: [1700, 1800, 1900] millions USD (example).
Recent Initiatives: Recent initiatives include focusing on Dolby Voice, VR/AR technologies, and expanding its presence in the automotive market.
Summary
Dolby Laboratories is a strong company with a leading position in audio and imaging technologies, driven by its licensing model and patent portfolio. While licensing revenue is a key strength, it also presents a potential weakness if consumer electronics sales decline or piracy increases. Dolby needs to continue investing in new technologies and expanding into new markets to maintain its competitive edge.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings
- Analyst reports
- Industry publications
- Dolby Laboratories investor relations website
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly.
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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