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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Dropbox Inc. To summarize, we found that Dropbox Inc ranked in the 33th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for DBX, they are:
Dropbox Inc's effective tax rate, as measured by taxes paid relative to net income, is at 25 -- greater than 87.65% of US stocks with positive free cash flow.
Dropbox Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.51. This coverage rate is greater than that of merely 15.73% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 10. This value is greater than 80.83% stocks in the Technology sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Dropbox Inc? See ACIW, STM, TDY, VSH, and YY.
Did you know we’re hosting a discussion on productivity, culture, and talent at TNW2020 this year? Check out our session on ‘Redefining the way we work’ here. When COVID-19 first hit, futurist Peter Schwarz warned businesses would soon embark on a grand experiment unlike any before: “We’re going to learn the hard way, rather quickly and by necessity, everything that can be done remotely. We’re not going back to zero afterward.” For many of us, the reality of that shift is a lot more lo-fi than anticipated. Sure, mastering Microsoft Teams presented a temporary challenge, but maintaining professionalism whilst handling… This story continues at The Next Web Or just read more coverage about: Dropbox , Snapchat
Led by owner-operator Drew Houston, Dropbox (DBX) is at an interesting inflection point in its growth story. Unlike other cloud players, the stock has been seemingly left out of the "work from home" rally over the past six months. Up only 5% this year and trading for around 15x normalized...
Summary List Placement In 1999, Google employees gathered around a ping-pong table to listen to a presentation that would change the company's future. New board member and ex-Intel employee John Doerr introduced the young team to a system of objectives and key results (OKRs) , a blue-sky thinking technique that helped take the company from garage start-up to trillion-dollar business. It identified long-term objectives and a series of key, specific results that track whether the objective has been met. Doerr recounted in "Measures What Matters," his 2017 book, that when he told Google about the goal-setting system, cofounder Sergey Brin said: "Well, we need to have some organising principle. We don't have one, and this might as well be it." Google still uses this technique — Larry Page, ...