* Note: Prices are in Million (M) USD.
Description:
Dropbox, Inc. provides a worldwide collaboration platform. The company is headquartered in San Francisco, California.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $942 M
Debt : $3,010 M
EBITDA : $684 M
Net Debt (Debt - Cash): $2,068 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Technology
Industry: Software - infrastructure
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 10.64
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 10 overlapping fiscal years (max 20).Average Free Cash Flow: $470 M
Average Revenue: $1,705 M
Revenue Converted To Free Cash Flow (%): 27.6%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $2,548 M
Revenue 4 Years Ago (2020-12-31): $1,914 M
Last 5 Years Average Revenue Growth: 7%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $323 M
Share Count 5 Years Ago (2020-12-31): $414 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.77
Trailing 12-Month Earnings Per Share (EPS): $2.69
Average Earnings Per Share (EPS): $2.73
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 6 valid ROE years (max 20).Average ROE: -101.7%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $29
52-Week Low: $21
Threshold Price (15% Above 52-Week Low): $25
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $7,230 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 22 points to above Dropbox Inc (DBX) stock.
Last 6 Years Avg PE 19.55, Fair Value PE 25, Industry Based PE 30, Growth Based PE 6, RCFC Based PE 34.04, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 20.24. Value-Trades has assined P/E value 20.24. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.73.
The fair value of Dropbox Inc (DBX) stock should be (20.24 x $2.73) = $55.25.
