As most people know, Dropbox is a cloud storage and smart workplace solution built on the premise that everyone should be able to access their important files from anywhere on any device. Led by owner-operator Drew Houston, Dropbox is at an interesting inflection point in its growth story. Unlike other cloud players, the stock has seemingly been left out of the “work from home” rally over the past six months. Up only 5% this year and trading for around 15x normalized free cash flow, the company looks undervalued. Attractive upside exists if the company can come anywhere close to hitting their 5-year performance targets.
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The Market May Be Underestimating Dropbox
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As most people know, Dropbox is a cloud storage and smart workplace solution built on the premise that everyone should be able to access their important files from anywhere on any device. Led by owner-operator Drew Houston, Dropbox is at an interesting inflection point in its growth story. Unlike other cloud players, the stock has seemingly been left out of the “work from home” rally over the past six months. Up only 5% this year and trading for around 15x normalized free cash flow, the company looks undervalued. Attractive upside exists if the company can come anywhere close to hitting their 5-year performance targets.