Dropbox, Inc. DBX
Composite 63/100; the shares have moved about 44% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Balance-sheet strength ranks 46/100 — a slight mark against it.
Quality ranks 78/100 — a strong point in its favour. Momentum ranks 77/100 — a strong point in its favour. Valuation ranks 57/100 — a slight point in its favour.
Balance-sheet strength ranks 46/100 — a slight mark against it.
What the company does Dropbox provides a cloud-based content collaboration platform for individuals, teams, and organizations, offering both free and premium subscription tiers. Its platform integrates file storage, sharing, and productivity tools across industries like professional services, technology, and education.
Key financials Dropbox reports strong profitability with gross margins at 79.7% and operating margins at 27.5%. ROE is 16.8%, ROA 14.2%, and ROCE 38.5%. However, revenue growth is flat at 0.8% and EPS declined -5.9%, while free cash flow yield stands at 10.9%.
Stock health The stock shows mixed technical signals: RSI(14) at 64.50 suggests mild overbought conditions, and it is -4.26% below its 52-week high. Momentum is positive over 3m (32.09%) and 6m (22.42%), though 12m momentum is lower at 14.92%.
Price vs fair value The stock trades at a **discount of 66.70%** to our fair-value estimate of 53.54 and at a **PREMIUM of 18.51%** to the analyst 12-month target of 26.17. - Analysts expect limited upside given competitive pressure in cloud collaboration (Zacks, 2026-07-30). - Growth concerns persist as revenue growth remains near zero (Sideravia data). - The company’s high valuation multiples (P/E 15.95, P/B 29.81) may be hard to justify without stronger growth.
Looking forward Forward P/E of 9.73 and PEG of 0.15 suggest potential value if growth accelerates. However, weak revenue and EPS trends, along with high debt/EBITDA (3.24), warrant caution. Execution on product integration and monetization will be key to closing the valuation gap.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.