Dropbox Price To Earning vs. Return On Equity
| DBX Stock | USD 29.77 0.68 2.23% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.55 | 0.8087 |
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For Dropbox profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dropbox to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dropbox utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dropbox's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dropbox over time as well as its relative position and ranking within its peers.
Dropbox |
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dropbox. If investors know Dropbox will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dropbox listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.028 | Earnings Share 1.73 | Revenue Per Share 7.76 | Quarterly Revenue Growth 0.009 | Return On Assets 0.105 |
The market value of Dropbox is measured differently than its book value, which is the value of Dropbox that is recorded on the company's balance sheet. Investors also form their own opinion of Dropbox's value that differs from its market value or its book value, called intrinsic value, which is Dropbox's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dropbox's market value can be influenced by many factors that don't directly affect Dropbox's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dropbox's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dropbox is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dropbox's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Dropbox Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Dropbox's current stock value. Our valuation model uses many indicators to compare Dropbox value to that of its competitors to determine the firm's financial worth. Dropbox is rated below average in price to earning category among its peers. It is rated below average in return on equity category among its peers reporting about 0.01 of Return On Equity per Price To Earning. The ratio of Price To Earning to Return On Equity for Dropbox is roughly 144.27 . At this time, Dropbox's Return On Equity is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dropbox's earnings, one of the primary drivers of an investment's value.Dropbox's Earnings Breakdown by Geography
Dropbox Return On Equity vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
Dropbox |
| = | 24.28 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Dropbox |
| = | 0.17 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Dropbox Return On Equity Comparison
Dropbox is currently under evaluation in return on equity category among its peers.
Dropbox Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Dropbox, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dropbox will eventually generate negative long term returns. The profitability progress is the general direction of Dropbox's change in net profit over the period of time. It can combine multiple indicators of Dropbox, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -21.5 M | -20.4 M | |
| Interest Income | 10.5 M | 9.3 M | |
| Operating Income | 383.5 M | 402.7 M | |
| Net Income From Continuing Ops | 554.6 M | 582.3 M | |
| Income Before Tax | 554.4 M | 582.1 M | |
| Total Other Income Expense Net | 170.9 M | 179.4 M | |
| Net Income Applicable To Common Shares | 636.2 M | 668 M | |
| Net Income | 453.6 M | 476.3 M | |
| Income Tax Expense | 100.8 M | 105.8 M | |
| Net Interest Income | 16.1 M | 16.9 M | |
| Non Operating Income Net Other | 9.3 M | 8.8 M | |
| Change To Netincome | 125.1 M | 118.9 M | |
| Net Income Per Share | 1.33 | 1.40 | |
| Income Quality | 1.73 | 1.81 | |
| Net Income Per E B T | 0.82 | 0.97 |
Dropbox Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Dropbox. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dropbox position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dropbox's important profitability drivers and their relationship over time.
Use Dropbox in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dropbox position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dropbox will appreciate offsetting losses from the drop in the long position's value.Dropbox Pair Trading
Dropbox Pair Trading Analysis
The ability to find closely correlated positions to Dropbox could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dropbox when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dropbox - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dropbox to buy it.
The correlation of Dropbox is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dropbox moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dropbox moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dropbox can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Dropbox position
In addition to having Dropbox in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for Dropbox Stock Analysis
When running Dropbox's price analysis, check to measure Dropbox's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dropbox is operating at the current time. Most of Dropbox's value examination focuses on studying past and present price action to predict the probability of Dropbox's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dropbox's price. Additionally, you may evaluate how the addition of Dropbox to your portfolios can decrease your overall portfolio volatility.