A Business at a Glance
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Dolby Laboratories, Inc.
DLB
$4.9B
Mkt Cap
$49.86
+1.42%
Dolby Laboratories, Inc. (DLB) has a current P/E ratio of 20.2, compared to its historical median P/E of 27.3. The stock is currently considered Cheap based on its historical valuation range.
Dolby Laboratories, Inc. (DLB) has a 5-year average return on invested capital (ROIC) of 9.9%. This is below average and may indicate limited pricing power.
Dolby Laboratories, Inc. (DLB) has a market capitalization of $4.8B. It is classified as a mid-cap stock.
Yes, Dolby Laboratories, Inc. (DLB) pays a dividend with a trailing twelve-month yield of 2.75%. The company also returns capital through share buybacks, with a buyback yield of 4.37%.
Based on historical P/E analysis, Dolby Laboratories, Inc. (DLB) appears cheap. The current P/E of 20.2 is 26% below its historical median of 27.3. The estimated fair value CAGR (P/E method) is 5.7%.
Dolby Laboratories, Inc. (DLB) operates in the Patent Owners & Lessors industry, within the Financials sector.
Dolby Laboratories, Inc. (DLB) reported annual revenue of $1.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Dolby Laboratories, founded in 1965, develops and licenses audio and video technologies that enable compelling entertainment experiences across movies, TV, music, sports, and emerging content categories. The company generates the vast majority of its revenue by licensing branded technologies—including audio codecs (DD+, Dolby Atmos), Dolby Vision video technology, and imaging patents—to approximately 1,000 electronics device manufacturers, with a smaller portion derived from cinema hardware and services sold to movie exhibitors. Dolby's business model is built on a licensing ecosystem where content creators, distributors (streaming platforms, broadcasters), and device makers create a virtuous cycle: as more content is produced in Dolby formats, device manufacturers have greater incentive to embed the technology, which in turn encourages more content creation. The company's competitive moat stems from its deep expertise in signal processing, close relationships with artists and industry experts, and the Dolby brand's synonymity with high-quality entertainment, which has become critical to consumer electronics manufacturers and is occasionally mandated as industry standards. Dolby serves diverse end markets including mobile devices, broadcast, consumer electronics, personal computers, automotive, and cinema, with particular growth momentum in spatial audio adoption across devices and emerging applications in user-generated content and automotive entertainment systems.
【Atmos and Vision momentum accelerating】 Management expects Dolby Atmos, Dolby Vision, and imaging patents to grow approximately 15% in fiscal 2026, comprising nearly half of licensing revenue, while foundational audio technology revenue is expected to decline slightly. The company is seeing strong adoption of Dolby Vision 2 in television lineups, which is designed to increase average selling prices and drive deeper device penetration, with first TVs expected in market by end of 2026. Automotive represents a significant growth opportunity, with recent wins including partnerships with Porsche, Cadillac EV lineup, Audi, NIO, and integration into Qualcomm's Gen 5 Snapdragon automotive platform, positioning auto as a potential separate end market in the future. The video distribution program, a new consumption-based patent pool for content streaming providers, began recognizing revenue in fiscal 2026 and significantly expands the addressable market for imaging patents beyond traditional device licensing. Management remains focused on expanding the reach of Dolby technologies into new content, media, devices, and audiences while maintaining operating margin improvement of 50–100 basis points.
| Metric | Target | Period |
|---|---|---|
| Revenue | $1.4 billion–$1.45 billion | FY2026 |
| Licensing revenue | $1.295 billion–$1.345 billion | FY2026 |
| Non-GAAP operating expenses | $780 million–$800 million | FY2026 |
| Non-GAAP earnings per share | $4.30–$4.45 | FY2026 |
| Q3 FY2026 Revenue | $295 million–$325 million | Q3 FY2026 |
| Q3 FY2026 Licensing revenue | $270 million–$300 million | Q3 FY2026 |
| Q3 FY2026 Non-GAAP EPS | $0.56–$0.71 | Q3 FY2026 |
Revenue (FY2026): “We expect fiscal 2026 total revenue to range from $1.4 billion-$1.45 billion.”
Licensing revenue (FY2026): “Within that, licensing revenue is expected to be between $1.295 billion-$1.345 billion.”
Non-GAAP operating expenses (FY2026): “We are targeting non-GAAP operating expenses between $780 million-$800 million.”
Non-GAAP earnings per share (FY2026): “We continue to expect non-GAAP earnings per share to be between $4.30-$4.45.”
“For Q3 fiscal 2026, we expect revenue to be between $295 million and $325 million.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.4B | 1.3B | 1.3B | 1.3B | 1.3B | 1.3B |
| Net Income | 244M | 255M | 262M | 201M | 184M | 310M |
| EPS | $2.52 | $2.62 | $2.69 | $2.05 | $1.81 | $2.97 |
| Free Cash Flow | 301M | 436M | 297M | 337M | 271M | 393M |
| ROIC | 10.6% | 10.0% | 10.8% | 8.7% | 7.6% | 12.3% |
| Gross Margin | 87.4% | 70.8% | 75.1% | 68.5% | 67.0% | 72.5% |
| Debt/Equity | 0.00 | 0.23 | 0.25 | 0.26 | 0.20 | 0.19 |
| Dividends/Share | $1.37 | $1.32 | $1.23 | $1.11 | $1.02 | $0.91 |
| Operating Income | 252M | 265M | 258M | 216M | 207M | 344M |
| Operating Margin | 18.5% | 19.6% | 20.3% | 16.6% | 16.5% | 26.9% |
| ROE | 9.3% | 10.0% | 10.8% | 8.7% | 7.6% | 12.3% |
| Shares Outstanding | 96M | 97M | 97M | 98M | 102M | 104M |
Dolby Laboratories, Inc. passes 4 of 9 quality checks, suggesting mixed fundamentals.
Dolby Laboratories, Inc. trades at 20.2x trailing earnings, compared to its 15-year median P/E of 27.3x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 7.9x vs a median of 22.4x. The company's 5-year average ROIC is 9.9% with a gross margin of 70.8%. Total shareholder yield (dividends + buybacks) is 7.1%. At current prices, the estimated annualized return to fair value is +17.4%.
Dolby Laboratories, Inc. (DLB) has a net profit margin of 18.9%. This is a healthy margin.
Dolby Laboratories, Inc. (DLB) generated $436 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Dolby Laboratories, Inc. (DLB) has a debt-to-equity ratio of 0.23. This indicates a conservatively financed balance sheet.
Dolby Laboratories, Inc. (DLB) reported earnings per share (EPS) of $2.62 in its most recent fiscal year.
Dolby Laboratories, Inc. (DLB) has a return on equity (ROE) of 10.0%. This indicates moderate shareholder returns.
Dolby Laboratories, Inc. (DLB) has a 5-year average gross margin of 70.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for Dolby Laboratories, Inc. (DLB), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Dolby Laboratories, Inc. (DLB) has a book value per share of $26.94, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects Dolby Atmos, Dolby Vision, and imaging patents to grow approximately 15% in fiscal 2026, comprising nearly half of licensing revenue, while foundational audio technology revenue is expected to decline slightly. The company is seeing strong adoption of Dolby Vision 2 in television lineups, which is designed to increase average selling prices and drive deeper device penetration, with first TVs expected in market by end of 2026. Automotive represents a significant growth opportunity, with recent wins including partnerships with Porsche, Cadillac EV lineup, Audi, NIO, and integration into Qualcomm's Gen 5 Snapdragon automotive platform, positioning auto as a potential separate end market in the future. The video distribution program, a new consumption-based patent pool for content streaming providers, began recognizing revenue in fiscal 2026 and significantly expands the addressable market for imaging patents beyond traditional device licensing. Management remains focused on expanding the reach of Dolby technologies into new content, media, devices, and audiences while maintaining operating margin improvement of 50–100 basis points.
Based on recent SEC filings and earnings calls, Dolby Laboratories, Inc. (DLB) has provided the following forward guidance: Revenue: $1.4 billion–$1.45 billion (FY2026); Licensing revenue: $1.295 billion–$1.345 billion (FY2026); Non-GAAP operating expenses: $780 million–$800 million (FY2026); Non-GAAP earnings per share: $4.30–$4.45 (FY2026); Q3 FY2026 Revenue: $295 million–$325 million (Q3 FY2026), plus 2 additional metrics.
Q3 FY2026 Licensing revenue (Q3 FY2026): “Within that, we expect licensing revenue to be between $270 million and $300 million.”
Q3 FY2026 Non-GAAP EPS (Q3 FY2026): “Non-GAAP earnings per share is expected to be between $0.56 and $0.71.”