DLB
TechnologyDolby Laboratories, Inc. · Information Technology Services · $5B
What is Dolby Laboratories, Inc.?
Dolby Laboratories is a San Francisco-based technology company best known for its audio and imaging innovations that shape how people experience sound and picture across cinemas, televisions, mobile devices, and streaming platforms worldwide.
The company operates primarily through licensing its proprietary audio and video codec technologies to device makers, content distributors, and streaming services. Partners embed Dolby formats — such as Dolby Atmos, Dolby Vision, and Dolby Digital — into their products and pay ongoing royalties. Dolby also designs and manufactures professional equipment for cinema and broadcast environments, including cinema processors, amplifiers, and conferencing hardware, though licensing remains the core revenue engine.
Dolby Laboratories was incorporated in 2005 and is headquartered in San Francisco, California.
- Dolby Atmos — immersive spatial audio for cinema and consumer devices
- Dolby Vision — high-dynamic-range imaging for cinema and streaming
- Dolby Digital and Digital Plus — multichannel audio codec licensing
- Dolby Voice — audio conferencing and communications technology
- Professional cinema hardware including servers, processors, and loudspeakers
Is DLB a Good Stock to Buy?
UQS Score rates DLB as Good overall, reflecting a balanced profile with meaningful strengths and some areas that warrant attention.
The Risk pillar stands out as a clear strength, suggesting Dolby carries relatively low financial and operational risk compared with sector peers. The Valuation pillar is rated Attractive, meaning the stock does not appear stretched relative to its fundamentals — a notable characteristic in the technology sector where premium pricing is common.
Growth is the weakest element of Dolby's profile, pointing to limited near-term expansion momentum. Quality and Moat both register as Neutral, indicating the business is stable but not among the most competitively entrenched in its sector.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does DLB pay dividends?
Yes — Dolby Laboratories, Inc. pays a dividend.
Dolby Laboratories pays a regular dividend, which is relatively uncommon among mid-cap technology companies. This reflects the company's stable, royalty-driven cash generation and a capital allocation approach that rewards shareholders directly. Investors seeking income alongside technology exposure may find this characteristic relevant when evaluating DLB against peers that reinvest all earnings into growth.
When does DLB report earnings?
Dolby Laboratories reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
Dolby's royalty-based model tends to produce relatively predictable revenue patterns, though growth has been measured in recent periods. Licensing volumes tied to device shipments and streaming adoption are the primary variables investors watch each quarter.
For the most recent quarter's results and guidance, visit Dolby Laboratories' official investor relations page.
DLB Price History
-28.5% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Dolby Laboratories, Inc.?
Based on Dolby Laboratories, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
DLB Long-term Outlook
Dolby's fundamental outlook reflects a business with low risk and an attractively positioned valuation, but constrained near-term growth. The royalty model provides durable, recurring revenue that supports stability, yet the pace of new licensing adoption across emerging device categories will determine whether growth reaccelerates. The combination of a Strong Risk profile and Attractive Valuation suggests a margin of safety, while the Weak Growth label signals investors should temper expectations for rapid earnings expansion in the near term.
Growth drivers
- Expanding Dolby Atmos and Vision adoption across streaming platforms and consumer electronics
- Growth in connected and mobile device shipments that embed licensed Dolby codecs
- Increasing enterprise demand for Dolby Voice in hybrid communications environments
Key risks
- Sluggish global device shipment volumes that reduce royalty revenue
- Competitive pressure from open-source and proprietary codec alternatives
- Valuation re-rating risk if growth remains subdued over multiple quarters
DLB vs Peers
Dolby operates in a broader technology services landscape alongside companies that differ meaningfully in business model and end markets.
Genpact focuses on business process outsourcing and digital transformation services rather than proprietary technology licensing.
EPAM delivers software engineering and IT services, competing for technology budgets through project-based work rather than recurring royalties.
Ingram Micro operates as a global technology distributor, generating revenue through product logistics and supply chain services rather than IP licensing.
Frequently Asked Questions
What does Dolby Laboratories do?
Dolby Laboratories develops and licenses audio and imaging technologies used across cinemas, televisions, smartphones, and streaming services. Its formats — including Dolby Atmos and Dolby Vision — are embedded in consumer electronics and content platforms worldwide. The company also manufactures professional equipment for cinema and broadcast environments.
Does DLB pay dividends?
Yes, Dolby Laboratories pays a regular dividend. This is relatively uncommon for a mid-cap technology company and reflects the stable, recurring cash flows generated by its royalty licensing model. Investors seeking income from a technology holding may find this relevant.
When does DLB report earnings?
Dolby Laboratories reports financial results on a quarterly basis, in line with standard US-listed company practice. For exact dates and the most recent results, check Dolby's investor relations page directly.
Is DLB a good stock to buy?
UQS Score rates DLB as Good overall. The stock carries a Strong Risk profile and an Attractive Valuation, which may appeal to investors prioritizing stability. However, the Growth pillar is rated Weak, so those seeking high-growth technology exposure should weigh that carefully. The full pillar breakdown is available to Pro members.
Is DLB overvalued?
The UQS Valuation pillar for DLB is rated Attractive, suggesting the stock is not trading at an excessive premium relative to its fundamentals. In a sector where elevated valuations are common, this is a distinguishing characteristic. View the complete valuation metrics with a UQS Pro account.
How does DLB compare to its competitors?
Dolby's licensing-driven model differs from peers like Genpact and EPAM, which rely on services revenue, and Ingram Micro, which operates as a distributor. Dolby's royalty structure tends to produce more predictable margins, though its growth profile is more constrained than high-growth services peers.
What is DLB's market cap bracket?
Dolby Laboratories is classified as a mid-cap company. This places it in a range that typically offers more stability than small-cap peers while retaining some growth optionality compared with large-cap incumbents.
Who founded Dolby Laboratories?
Dolby Laboratories was founded by Ray Dolby, an American engineer and inventor whose work on noise reduction and audio encoding became foundational to modern entertainment technology. The company has grown from its origins in professional audio into a broad licensing and technology business.
Is DLB a long-term quality investment?
From a quality indicator perspective, DLB's Strong Risk profile and Attractive Valuation suggest a degree of durability. However, the Weak Growth and Neutral Moat ratings indicate the business may face headwinds sustaining competitive differentiation over time. Long-term investors should review the full UQS pillar analysis before drawing conclusions.
What is the main competitive advantage of Dolby Laboratories?
Dolby's primary advantage lies in its deeply embedded technology standards — formats like Dolby Atmos and Dolby Digital are integrated into global content and device ecosystems. This creates switching costs for manufacturers and distributors, though the UQS Moat pillar rates this advantage as Neutral relative to sector peers.
What sector does DLB belong to?
Dolby Laboratories is classified in the Technology sector. Its licensing model gives it characteristics more akin to software or intellectual property businesses than traditional hardware manufacturers, which influences how its margins and risk profile compare across the sector.
Is DLB a growth stock or value stock?
Based on UQS pillar labels, DLB leans toward value characteristics — the Valuation pillar is Attractive while the Growth pillar is Weak. This profile may appeal more to investors seeking reasonably priced, lower-risk technology exposure than to those targeting high-growth opportunities.
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Pro Analysis
DLB — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 23, 2026 | 59.5 | 44.8 | 56.0 | 28.8 | 99.8 | 90.4 | -0.1 |
| May 22, 2026 | 59.6 | 44.8 | 56.0 | 28.8 | 99.8 | 90.7 | +0.1 |
| May 21, 2026 | 59.5 | 44.8 | 56.0 | 28.8 | 99.8 | 90.7 | -0.2 |
| May 20, 2026 | 59.7 | 44.8 | 56.0 | 28.8 | 99.8 | 91.4 | +0.1 |
| May 19, 2026 | 59.6 | 44.8 | 56.0 | 28.8 | 99.8 | 90.8 | 0.0 |
| May 16, 2026 | 59.6 | 44.8 | 56.0 | 28.8 | 99.8 | 90.9 | +0.1 |
| May 15, 2026 | 59.5 | 44.8 | 56.0 | 28.8 | 99.8 | 90.6 | -0.1 |
| May 14, 2026 | 59.6 | 44.8 | 56.0 | 28.8 | 99.8 | 90.9 | +0.1 |
| May 13, 2026 | 59.5 | 44.8 | 56.0 | 28.8 | 99.8 | 90.3 | +0.2 |
| May 12, 2026 | 59.3 | 44.8 | 56.0 | 28.8 | 99.8 | 89.1 | 0.0 |
DLB — Pillar Breakdown
Quality
— 44.8/100 (25%)Dolby Laboratories, Inc. has average quality metrics, with room for improvement in margins or capital efficiency.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 28.8/100 (20%)Dolby Laboratories, Inc. faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 99.8/100 (15%)Dolby Laboratories, Inc. carries minimal financial risk with conservative leverage and strong solvency.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 90.6/100 (15%)Dolby Laboratories, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 56/100 (25%)Dolby Laboratories, Inc. has meaningful competitive advantages that should protect its market position. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for DLB.
Score Composition
Financial Data
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How is the DLB UQS Score Calculated?
The UQS (Unified Quality Score) for Dolby Laboratories, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Dolby Laboratories, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Dolby Laboratories, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.