Dolby Laboratories (DLB) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Dolby Laboratories

NYSE•Industrials•Specialty Business Services

$58.74-1.62(-0.03%)Pre-market

Market Cap

$5.43B

P/E

24.0x

P/S

4.0x

P/B

2.1x

Dolby Laboratories, Inc. engages in the design and manufacture of audio, imaging, accessibility, and other hardware and software solutions for 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. It also provides DD+, an advanced surround sound audio codec technology; Dolby AC-4, an audio codec that uses cutting edge compression; and HEVC, a 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 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. It serves film studios, content creators, post-production facilities, and broadcasters. Dolby Laboratories, Inc. was founded in 1965 and is headquartered in San Francisco, California.

How this company scores

AverageMetricSide Score: 58/100

Strongest: Cash & Earnings Quality (18/25); weakest: Profitability (12/25).

Profitability12/25

Growth13/25

Balance Sheet & Red Flags15/25

Cash & Earnings Quality18/25

Strengths

Strong marginsInterest easily coveredCash-backed earningsConsistent free cash flow

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 24.0x5y range 23.0x – 44.0x

Currently below its 20-quarter median.

P/S · 4.0x5y range 4.0x – 7.8x

Currently below its 20-quarter median.

P/B · 2.1x5y range 2.1x – 3.7x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Margin Pressure

Watch

Operating margins declined 17.7% — watch for continued compression, which may signal competitive or cost pressure.

Price & Volume

Market Cap $5.43B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.35B
Q. Revenue: $305.00M
TTM EBITDA: $331.94M
TTM Op. Income: $239.10M
Q. Op. Income: $34.32M
TTM Net Income: $226.18M
Q. Net Income: $28.60M
EPS: $0.3
Shares Out.: $94.24M

$1.35B in TTM revenue grew 0.6% YoY, reaching $305.00M last quarter. TTM EBITDA of $331.94M and TTM operating income of $239.10M show growth is flowing through to the bottom line. TTM net income of $226.18M means revenue is converting into profit. Over the past year, TTM revenue is up 1% — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 86.8%
EBITDA Margin: 18.7%
Op. Margin: 11.3%
Net Margin: 9.4%

Op. margin of 11.3% is down 3.8% YoY — costs are rising relative to revenue. Net margin at 9.4% and gross margin of 86.8% show how much of each revenue dollar survives to profit. Over the past year, operating margin is down 25% — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 24.0x
P/S Ratio: 4.0x
P/B Ratio: 2.1x

At 24.0x P/E, the stock trades within typical market levels. P/S of 4.0x and P/B of 2.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Over the past year, P/E is down 12% — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $3.16B
Cash: $669.39M
Long-Term Debt: N/A
Book Value: $2.58B
D/E Ratio: N/A
Debt/EBITDA: 0.0

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $167.46M
TTM Free Cash Flow: $392.67M
FCF Margin: 29.0%
FCF / Net Income: 1.7

TTM FCF of $392.67M on $167.46M in operating cash flow. The FCF / Net Income ratio of 1.7x means free cash flow covers net income — earnings are backed by cash. Over the past year, free cash flow is down 10% — an improving trend.