Dolby Laboratories, Inc. (DLB) Stock

Dolby Laboratories, Inc. (DLB) is a Financials stock trading at $49.82 (as of 2026-07-24), with a market capitalization of $4.76B and a trailing P/E of 19.5. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Dolby Laboratories develops and licenses audio and imaging technologies used across cinema, digital TV, broadcast transmissions, and consumer devices, including mobile, OTT video and music services, and home entertainment. Its technology portfolio includes audio and video codecs (such as AAC, HE-AAC, AVC, and HEVC) and formats for multichannel audio, along with imaging and immersive offerings like Dolby Vision and Dolby Atmos.

Understand Dolby Laboratories, Inc.: how it makes money

Dolby Laboratories creates audio and imaging technology (audio codecs and video formats) and monetizes it primarily by licensing that technology to entertainment, device, and communications partners, with additional revenue from products and services.

Dolby’s profit engine is licensing core audio and imaging technologies (codecs and related experiences) into many downstream entertainment and device workflows, where studio and platform adoption supports ongoing licensing monetization.

Revenue by segment (latest quarter)
Broadcast$0.1B
Mobile$0.1B
CE$0.1B
Products&Svc$0.0B
Other$0.2B

Business quality (Solid): Dolby appears to run a high margin licensing model, with operating results supported by broad technology adoption across broadcast, mobile, and consumer electronics, but results can be sensitive to adoption and to items like licensing true-ups.

Valuation: At 21× earnings, DLB trades 38% below the Trading average (34×). Note: one-time items can distort reported P/E.

Bull case

  • High-margin licensing economics: Reported gross margin is 88.7%, and operating margin is 28.5% (period ended 2026-03-27), consistent with a technology licensing business model.
  • Multiple monetization routes from the same technology base: Provided revenue components include broadcast licensing revenue, mobile licensing revenue, and consumer electronics licensing revenue, plus revenue from products and services.
  • Adoption metrics can signal future licensing demand: Operational adoption indicators are provided, including Dolby Atmos studio adoption (studio count), Dolby Vision content availability, and Dolby Vision adoption on 4K televisions.

Bear case

  • Licensing revenue is tied to ecosystem adoption: If studio, content, device, or platform adoption metrics stall or shift, licensing revenue streams such as broadcast, mobile, and consumer electronics could be pressured.
  • Potential non-recurring components in reported licensing revenue: “Favorable true-up included in licensing revenue” is called out separately, which may indicate revenue effects that are not purely recurring licensing run-rate.
  • Revenue breakdown is incomplete in the provided data: Only selected revenue components are provided, so a meaningful portion of total revenue (the remainder after the listed categories) is not explicitly itemized here.
Valuation — source: SEC EDGAR (first-party)
Price$49.82
Market Cap$4.76B
P/E Ratio19.5
EV / EBITDA9.4
Price / Book1.81
Price / Sales3.49
FCF Yield16.4%
DCF Value (model)$47.75
DCF Upside vs Price-4.2%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$1.35B
Net Margin18.9%
Revenue Growth (YoY)7.1%
EPS Growth (YoY)5.3%
Financial Health — source: SEC EDGAR
Altman Z-Score7.08 (safe)
Valuation vs Sector & Industry
Stock P/E19.5
Sector P/E (Financials)15.4
Industry P/E (Trading)34.8
vs Sector26.9%
vs Industry-43.9%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional HolderVANGUARD GROUP INC ($495.81M)
Institutional Holders Tracked10
Congressional Trades (recent)4
Company
SectorFinancials
IndustryTrading
CEOKevin J. Yeaman
Employees2,080
CountryUS
IPO Date2005-02-17

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DLB earnings history · DLB institutional & insider holders · DLB KPIs & operating metrics · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-07-24.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.