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The EBITDA is a measure of a Dropbox's overall financial performance and is widely used to measure a its profitability. Dropbox's EBITDAĭropbox's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $518.4 million. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies. The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Dropbox's future profitability. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value. Dropbox's PEG ratioĭropbox's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.2074. The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
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That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). In other words, Dropbox shares trade at around 23x recent earnings.
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Dropbox's P/E ratioĭropbox's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 23x. However, analysts commonly use some key metrics to help gauge the value of a stock. Valuing Dropbox stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Dropbox's overall performance. Is Dropbox stock undervalued or overvalued?
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