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Dropbox Inc(DBX)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for DBX
10/06/2026: DBX (2-star) is currently NOT-A-BUY. Pass it for now.
Dropbox Inc is a well-established cloud content and collaboration company known for its user-friendly storage platform and product-led growth model. The company generates strong free cash flow and maintains a solid balance sheet, making it a viable candidate for value-oriented investors seeking stable software exposure. However, it faces significant risks from intense competition with technology giants like Microsoft and Google, which frequently bundle storage into their broader software suites. Dropbox's primary growth story involves transforming from a storage provider into an AI-enabled productivity hub through tools like Dropbox Dash and Dropbox Sign. Investors should monitor churn in the small business segment and the company's ability to successfully monetize its newer AI features.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Dropbox is a mature company with steady growth rather than the high-growth profile typical for this style. |
| Momentum investor | Mixed fit | The stock often lacks strong upward momentum, making it dependent on specific positive signals or market catalysts. |
| Value investor | Strong fit | Dropbox trades at reasonable valuation multiples and generates strong free cash flow, appealing to value-oriented investors. |
| Dividend investor | Weak fit | The company does not pay a dividend, making it unsuitable for income-focused portfolios. |
| Low-risk investor | Mixed fit | While profitable, the company faces high competition which introduces business model risks. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | The stock can experience swings based on earnings reports and broader tech sector sentiment. |
| Valuation risk | Low | The company currently trades at moderate multiples, limiting downside valuation risk compared to high-growth peers. |
| Competition risk (Cloud Suite competition) | High | Intense competition from Microsoft and Google threatens to commoditize basic storage offerings. |
| Business quality | Medium | Dropbox has a strong, sticky user base, but its reliance on third-party infrastructure and the threat of platform integration persists. |
| Dividend income | Low / none | Lack of dividends means investors cannot rely on consistent cash distributions. |
| Execution risk | Medium | The ability to successfully deploy AI features to maintain user engagement is critical for long-term growth. |
Price Behavior
Strong Uptrend
The stock has maintained a strong upward price trend across the last three quarters.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -7.28% | Avg. Invested days 46 | Today’s Advisory PASS |
Upturn Advisory Rating  | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 10/06/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 7.47B USD | Price to earnings Ratio 18.99 | 1Y Target Price 31.8 |
Price to earnings Ratio 18.99 | 1Y Target Price 31.8 | ||
Volume (30-day avg) 4.5M shares | Beta 0.63 | 52 Weeks Range 21.70 - 38.17 | Updated Date 10/05/2026 |
52 Weeks Range 21.70 - 38.17 | Updated Date 10/05/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 1.81 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Subscription Revenue | Monthly and annual fees from Personal, Professional, and Business storage/collaboration plans. | This is the core, stable driver of cash flow for the company. |
| Geographic Markets | Operations in North America, Europe, and Asia-Pacific. | The company has a global reach but remains heavily anchored in US-based demand. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE 18.99 | Forward PE 10.85 | Enterprise Value 10.30B | Price to Sales(TTM) 2.95 |
Enterprise Value 10.30B | Price to Sales(TTM) 2.95 | ||
Enterprise Value to Revenue 4.07 | Enterprise Value to EBITDA 12.34 | Shares Outstanding 142.30M | Shares Floating 128.61M |
Shares Outstanding 142.30M | Shares Floating 128.61M | ||
Percent Insiders 8.69 | Percent Institutions 130.61 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About Dropbox Inc
Exchange NASDAQ | Headquarters San Francisco, CA, United States | ||
IPO Launch date 2018-03-23 | Co-Founder, Co-CEO & Chairman Mr. Andrew W. Houston | ||
Sector Technology | Industry Software - Infrastructure | Full time employees 2113 | Website https://www.dropbox.com |
Full time employees 2113 | Website https://www.dropbox.com | ||
Dropbox, Inc. provides a content collaboration platform in the United States and internationally. The company's platform enables individuals, families, teams, and organizations to collaborate for free through its website or app, or through a paid subscription plan for premium features. Its platform consists of various elements, such as unified home for content, global sharing network, and product experiences and integrations. The company serves customers in the professional services, technology, media, education, industrial, consumer and retail, and financial services industries. The company was formerly known as Evenflow, Inc. and changed its name to Dropbox, Inc. in October 2009. Dropbox, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.
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