Dropbox Inc. provides a collaboration platform worldwide. Its platform allows individuals, teams, and organizations to create, access, and share content online. The company was founded in 2007 and is based in San Francisco, California.
DBX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Dropbox Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Dropbox Inc ranked in the 39th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 4%. As for the metrics that stood out in our discounted cash flow analysis of Dropbox Inc, consider:
As a business, DBX is generating more cash flow than 68.04% of positive cash flow stocks in the Technology.
The business' balance sheet reveals debt to be 12% of the company's capital (with equity being the remaining amount). Approximately only 22.77% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Dropbox Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Technology that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as DBX, try TXN, ACN, FTV, ROG, and EXFO.