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DBX

Dropbox Inc – Software Publishers
dropbox is the home for your most important stuff—now we’re bringing it to life with a growing family of products. today, over 400 million people across every continent rely on dropbox to get stuff done. with offices around the world, we're growing fast and building a collaborative team that makes work and life delightful. as we scale our global brand, there’s plenty of space for you to grow alongside us and simplify life for millions of people around the world. learn more about careers at dropbox here: www.linkedin.com/company/dropbox/careers
Analysis Results
Intrinsic Value $69.71
Latest Price $24.11
Relative Value 65% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 20.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 20.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 0.604 0.561
2025 0.729 0.629
2026 0.879 0.705
2027 1.06 0.79
2028 1.28 0.885
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 23.0 billion. This corresponds to a present value of 14.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.57 billion. Adding in the terminal value gives a total present value of 18.4 billion.

There are presently 263.0 million outstanding shares, so the intrinsic value per share is 69.71.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,516,600,000
Current Cash 1,356,000,000
Current Liabilities 1,201,500,000
Current Debt 116,200,000
Non-Cash Working Capital (NCWC) -924,700,000
Change in NCWC 10,600,000
EBIT 383,500,000
Tax Provision 100,800,000
Depreciation and Amortization 170,000,000
Capital Expenditure -24,600,000
Unlevered Free Cash Flow 469,772,727
Current Assets 1,489,800,000
Current Cash 1,343,400,000
Current Liabilities 1,196,500,000
Current Debt 114,800,000
Non-Cash Working Capital (NCWC) -935,300,000
Change in NCWC -11,600,000
EBIT 356,500,000
Tax Provision -360,500,000
Depreciation and Amortization 157,100,000
Capital Expenditure -34,900,000
Unlevered Free Cash Flow 467,100,000
Current Assets 1,849,800,000
Current Cash 1,718,100,000
Current Liabilities 1,175,800,000
Current Debt 120,400,000
Non-Cash Working Capital (NCWC) -923,700,000
Change in NCWC -41,700,000
EBIT 305,700,000
Tax Provision -36,500,000
Depreciation and Amortization 151,400,000
Capital Expenditure -28,900,000
Unlevered Free Cash Flow 386,500,000
Current Assets 1,227,500,000
Current Cash 1,121,300,000
Current Liabilities 1,087,800,000
Current Debt 99,600,000
Non-Cash Working Capital (NCWC) -882,000,000
Change in NCWC -28,100,000
EBIT 121,200,000
Tax Provision 6,100,000
Depreciation and Amortization 159,300,000
Capital Expenditure -80,300,000
Unlevered Free Cash Flow 172,100,000
Current Assets 1,243,200,000
Current Cash 1,159,000,000
Current Liabilities 1,014,800,000
Current Debt 76,700,000
Non-Cash Working Capital (NCWC) -853,900,000
Change in NCWC -213,700,000
EBIT -80,500,000
Tax Provision 700,000
Depreciation and Amortization 173,500,000
Capital Expenditure -137,800,000
Unlevered Free Cash Flow -258,500,000
Current Assets 1,210,200,000
Current Cash 1,089,300,000
Current Liabilities 837,500,000
Current Debt 76,400,000
Non-Cash Working Capital (NCWC) -640,200,000
Change in NCWC -102,300,000
EBIT -494,000,000
Tax Provision 4,800,000
Depreciation and Amortization 166,800,000
Capital Expenditure -66,000,000
Unlevered Free Cash Flow -495,500,000
Current Assets 518,100,000
Current Cash 430,000,000
Current Liabilities 738,400,000
Current Debt 112,400,000
Non-Cash Working Capital (NCWC) -537,900,000
Change in NCWC -102,300,000
EBIT -113,700,000
Tax Provision 200,000
Depreciation and Amortization 181,800,000
Capital Expenditure -26,100,000
Unlevered Free Cash Flow -60,300,000

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