For those who appreciate value investing, NASDAQ:DBX is a compelling option with its solid fundamentals.

Our stock screening tool has pinpointed DROPBOX INC-CLASS A (NASDAQ:DBX) as an undervalued stock option. NASDAQ:DBX retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.

Assessing Valuation Metrics for NASDAQ:DBX

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:DBX boasts a 8 out of 10:

• Based on the Price/Earnings ratio, DBX is valued cheaply inside the industry as 89.64% of the companies are valued more expensively.
• The average S&P500 Price/Earnings ratio is at 25.74. DBX is valued slightly cheaper when compared to this.
• 89.64% of the companies in the same industry are more expensive than DBX, based on the Price/Forward Earnings ratio.
• The average S&P500 Price/Forward Earnings ratio is at 21.31. DBX is valued slightly cheaper when compared to this.
• Based on the Enterprise Value to EBITDA ratio, DBX is valued cheaper than 86.79% of the companies in the same industry.
• DBX's Price/Free Cash Flow ratio is rather cheap when compared to the industry. DBX is cheaper than 92.86% of the companies in the same industry.
• The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
• The decent profitability rating of DBX may justify a higher PE ratio.
• DBX's earnings are expected to grow with 13.01% in the coming years. This may justify a more expensive valuation.

Analyzing Profitability Metrics

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:DBX scores a 7 out of 10:

• With an excellent Return On Assets value of 18.42%, DBX belongs to the best of the industry, outperforming 98.21% of the companies in the same industry.
• DBX has a better Return On Invested Capital (15.54%) than 95.00% of its industry peers.
• The last Return On Invested Capital (15.54%) for DBX is above the 3 year average (11.60%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 22.50%, DBX belongs to the top of the industry, outperforming 94.64% of the companies in the same industry.
• DBX's Operating Margin of 14.48% is amongst the best of the industry. DBX outperforms 86.07% of its industry peers.
• DBX's Gross Margin of 80.84% is amongst the best of the industry. DBX outperforms 85.71% of its industry peers.
• In the last couple of years the Gross Margin of DBX has grown nicely.

How We Gauge Health for NASDAQ:DBX

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:DBX, the assigned 5 for health provides valuable insights:

• The Debt to FCF ratio of DBX is 2.19, which is a good value as it means it would take DBX, 2.19 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of DBX (2.19) is better than 73.21% of its industry peers.

A Closer Look at Growth for NASDAQ:DBX

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:DBX has received a 5 out of 10:

• The Earnings Per Share has grown by an nice 18.13% over the past year.
• Measured over the past years, DBX shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.05% on average per year.
• DBX shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.00% yearly.
• The Earnings Per Share is expected to grow by 8.98% on average over the next years. This is quite good.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of DBX contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.