Dropbox Valuation

Is DBX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of DBX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DBX ($25.98) is trading below our estimate of fair value ($62.34)

Significantly Below Fair Value: DBX is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DBX?

Other financial metrics that can be useful for relative valuation.

DBX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.7x
Enterprise Value/EBITDA15x
PEG Ratio-11.1x

Price to Earnings Ratio vs Peers

How does DBX's PE Ratio compare to its peers?

The above table shows the PE ratio for DBX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average83.3x
INFA Informatica
124.2x23.4%US$8.3b
PEGA Pegasystems
56.8x23.9%US$6.8b
ESTC Elastic
136.2x-20.7%US$8.2b
OTEX Open Text
16.2x16.4%US$7.9b
DBX Dropbox
14.5x-1.2%US$8.4b

Price-To-Earnings vs Peers: DBX is good value based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (83.3x).


Price to Earnings Ratio vs Industry

How does DBX's PE Ratio compare vs other companies in the US Software Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DBX is good value based on its Price-To-Earnings Ratio (14.5x) compared to the US Software industry average (38.5x).


Price to Earnings Ratio vs Fair Ratio

What is DBX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DBX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.4x
Fair PE Ratio29.7x

Price-To-Earnings vs Fair Ratio: DBX is good value based on its Price-To-Earnings Ratio (14.5x) compared to the estimated Fair Price-To-Earnings Ratio (29.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DBX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$25.98
US$26.63
+2.5%
12.4%US$32.00US$20.00n/a8
Oct ’25US$25.05
US$26.63
+6.3%
12.4%US$32.00US$20.00n/a8
Sep ’25US$25.14
US$27.11
+7.8%
12.6%US$32.00US$20.00n/a9
Aug ’25US$23.22
US$27.56
+18.7%
11.2%US$32.00US$22.00n/a9
Jul ’25US$22.53
US$27.56
+22.3%
11.2%US$32.00US$22.00n/a9
Jun ’25US$22.53
US$27.67
+22.8%
10.9%US$32.00US$22.00n/a9
May ’25US$23.49
US$29.37
+25.0%
13.7%US$36.00US$24.00n/a10
Apr ’25US$24.31
US$29.87
+22.9%
12.6%US$36.00US$24.00n/a10
Mar ’25US$24.14
US$30.27
+25.4%
12.0%US$36.00US$24.00n/a10
Feb ’25US$32.27
US$31.55
-2.2%
13.3%US$37.00US$24.00n/a11
Jan ’25US$29.48
US$30.18
+2.4%
12.4%US$36.00US$24.00n/a11
Dec ’24US$28.78
US$29.26
+1.7%
11.4%US$34.00US$24.00n/a11
Nov ’24US$26.16
US$30.17
+15.3%
10.5%US$35.00US$24.00US$25.9811
Oct ’24US$27.23
US$30.17
+10.8%
10.5%US$35.00US$24.00US$25.0511
Sep ’24US$27.86
US$29.21
+4.8%
13.6%US$35.00US$22.00US$25.1412
Aug ’24US$26.75
US$28.04
+4.8%
15.3%US$34.00US$18.00US$23.2212
Jul ’24US$26.67
US$26.92
+0.9%
15.9%US$34.00US$18.00US$22.5312
Jun ’24US$23.19
US$26.62
+14.8%
17.1%US$34.00US$18.00US$22.5311
May ’24US$20.35
US$26.89
+32.1%
16.4%US$34.00US$20.00US$23.4911
Apr ’24US$21.62
US$27.21
+25.9%
15.4%US$34.00US$20.00US$24.3111
Mar ’24US$20.55
US$27.21
+32.4%
15.4%US$34.00US$20.00US$24.1411
Feb ’24US$23.88
US$26.94
+12.8%
15.6%US$34.00US$20.00US$32.2711
Jan ’24US$22.38
US$27.32
+22.1%
16.0%US$34.00US$20.00US$29.4811
Dec ’23US$23.75
US$27.32
+15.0%
16.0%US$34.00US$20.00US$28.7811
Nov ’23US$21.69
US$28.50
+31.4%
13.4%US$35.00US$24.00US$26.169

Analyst Forecast: Target price is less than 20% higher than the current share price.


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