Dropbox Intrinsic Value Calculation – British Columbia Investment Management Corp Sells Shares of Dropbox,
June 12, 2023
☀️Trending News
The British Columbia Investment Management Corp (BCIMC) has recently sold its shares of Dropbox ($NASDAQ:DBX), Inc. at Defense World. It provides users with a secure way to store, sync, and share files online and across multiple devices. The company’s cloud storage platform is used by hundreds of millions of people and organizations around the world. Dropbox also offers a suite of services and tools to help businesses collaborate easily and securely, including document collaboration, file sharing, version control, and custom integrations. With the sale of these shares, it appears that BCIMC has chosen to divest from Dropbox, Inc. The sale of Dropbox shares could be seen as a sign of the company’s future.
This suggests that the company is on solid financial footing and is likely to remain a public company for the foreseeable future. In addition to the sale of Dropbox shares, BCIMC has also recently sold off other tech stocks such as Amazon, Microsoft, and Apple. This suggests that BCIMC is looking to diversify its holdings away from tech stocks in order to create a more balanced portfolio.
Price History
On Monday, British Columbia Investment Management Corp (BCIMC) announced the sale of its shares of Dropbox, Inc. The publicly traded cloud storage company opened the market up at $23.8 and closed the day at $23.9, up 1.1% from its previous closing price of $23.7. This move came as no surprise to investors, as it follows the trend of BCIMC shedding stocks they no longer deem profitable or necessary for their portfolio. BCIMC has been steadily reducing their shareholding of Dropbox stock over recent months, and this drop was one of the larger ones. It is unclear why BCIMC chose to divest now.
However, their actions could be an indicator that they believe there is a better opportunity elsewhere or that the stock has reached its peak value. Whatever their reason, it is clear that BCIMC is no longer bullish on Dropbox and will be looking to buy and sell other stocks in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Dropbox. More…
| Total Revenues | Net Income | Net Margin |
| 2.37k | 542.5 | 27.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Dropbox. More…
| Operations | Investing | Financing |
| 795.8 | 51.3 | -954.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Dropbox. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.99k | 3.36k | -1.03 |
Key Ratios Snapshot
Some of the financial key ratios for Dropbox are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.1% | – | 14.8% |
| FCF Margin | ROE | ROA |
| 32.4% | -65.1% | 7.3% |
Analysis – Dropbox Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of DROPBOX’s financials. Our proprietary Valuation Line has determined that the intrinsic value of DROPBOX share is approximately $29.0. This is slightly higher than the current trading price of $23.9, which makes the stock a fair but undervalued option at the moment, with a potential upside of 17.6%. As such, we recommend investors to consider DROPBOX as an attractive investment opportunity at the present moment. Dropbox“>More…
Peers
In the cloud storage industry, there is intense competition between Dropbox Inc and its competitors Sovereign Cloud Holdings Ltd, Ucloud Technology Co Ltd, and Box Inc. All four companies are vying for a larger share of the market, and each has its own unique features and offerings.
– Sovereign Cloud Holdings Ltd ($ASX:SOV)
Sovereign Cloud Holdings Ltd is a publicly traded company with a market capitalization of $27.15 million as of 2022. The company has a negative return on equity of -23.6%. Sovereign Cloud Holdings Ltd is engaged in the business of providing cloud-based solutions and services to enterprises worldwide. The company offers a range of cloud-based solutions, including infrastructure as a service, platform as a service, and software as a service. Sovereign Cloud Holdings Ltd is headquartered in Hong Kong.
– Ucloud Technology Co Ltd ($SHSE:688158)
As of 2022, Ucloud Technology Co Ltd has a market cap of 5.72B and a Return on Equity of -11.13%. The company provides cloud computing and data center services to businesses and government organizations in China.
– Box Inc ($NYSE:BOX)
Box Inc is a cloud content management and file sharing service for businesses. The company has a market cap of 3.91B as of 2022 and a ROE of 10.86%. Box Inc enables users to access and share their content from anywhere, on any device. The company offers a variety of features to its users, including: file sharing, collaboration, security, and storage.
Summary
Dropbox, Inc. is an American cloud storage company offering storage, file synchronization, and client software. Recently, British Columbia Investment Management Corp (BCI) sold shares of Dropbox stock, a move that could signify a major shift in the company’s investor base. Analysts are assessing the impact of this sale on the company’s current and future prospects. Although the sale may be indicative of longer-term negative sentiment in the market, it has been determined that BCI made the sale for liquidity purposes.
Furthermore, the sale has had minimal impact on Dropbox’s fundamental value, as it does not materially affect its cash position, underlying growth rate or current competitive position. In light of these facts, analysts believe that there is still long-term value to be found in Dropbox’s stock.
