Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business. One can also evaluate a company's profitability by comparing its return on invested capital (ROIC) to its weighted average cost of capital (WACC). The 3-year average EBITDA growth rate is 57.6%, which ranks better than 91% of the companies in Software industry. The 3-year average annual revenue growth rate of Dropbox is 17.9%, which ranks better than 76% of the companies in Software industry. The faster a company is growing, the more likely it is to be creating value for shareholders, especially if the growth is profitable.

GuruFocus research has found that growth is closely correlated with the long term performance of a company's stock. Growth is probably the most important factor in the valuation of a company. Storing digital data from music and films to documents, presentations and images has become big business with the lifestyle shift to accessing content and services online.Dropbox Stock Gives Every Indication Of Being Fairly Valued The strong expected demand shows not all tech companies have been hit by the events of this week, when big players, especially in social media, have seen their shares dive following reports that a data analysis firm hired by Donald Trump's presidential campaign misused personal information of some 50 million Facebook users.ĭropbox also plans a $100 million stock sale to the venture capital arm of Salesforce, according to the filing.ĭropbox is one of a number of tech firms centered around the internet 'cloud,' allowing users to store data for remote access by any internet-linked devices. Shares will trade under the 'DBX' ticker.

Dropbox now expects to price its shares between $18 and $20, according to a securities filing Wednesday, up from the $16 to $18 estimated earlier this month.Īt that price, the transaction could value the company at $7.85 billion.Ī final price will be set Thursday ahead of Friday's stock-trading debut.

Dropbox stock predictions