2/16/2023 0 Comments Dropbox stock google![]() Taking the high-growth tech sector as an example, with companies like DocuSign ( DOCU), Palantir ( PLTR) and others growing at 50% +, bottom-line growth is not on the agenda for those companies. This might sound odd at first, as in most cases growth cannot come with value at the same time and vice versa. ![]() Transformation from Growth to Valueĭropbox is in a unique position of being somewhat of a growth and value stock at the same time. With such a hefty price target, it is reasonable to feel a sense of disbelief at first, though further analysis should lay out reasonable arguments to support my valuation. ![]() ![]() My valuation expects Dropbox stock to be fairly valued at 55.74, which constitutes an upside potential of 72.09%. With strong results in Q2 2021, Dropbox stock is set to extend its recent rally throughout the whole of 2021. Even more impressive was Free Cash Flow (FCF) for Q2, which came in at $216.0 million, as compared to $119.8 the year before, an increase of 80% YOY. In summary, they beat numbers across the board with revenue coming in at $530.6 million, an increase of 13.5% YOY. Dropbox’s Q2 was a “standout quarter for the company, driven by strong revenue growth, record free cash flow, and margin expansion”, said Dropbox Chief Executive Officer Drew Houston. On August 5 th 2021, Dropbox released quarterly results for its second quarter which ended June 30 th. Strong financials and a rebound in revenue growth offer a strong foundation for more growth to come. Despite the share price rallying more than 40% year-to-date, Dropbox ( NASDAQ: DBX) is still not valued fairly.
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