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How to buy Dropbox stock | $19.53
Own Dropbox stock in just a few minutes.
Dropbox, Inc is a software—infrastructure business based in the US. Dropbox shares (DBX) are listed on the NASDAQ and all prices are listed in US Dollars. Dropbox employs 2,801 staff and has a trailing 12-month revenue of around USD$1.8 billion.
How to buy shares in Dropbox
- Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
- Search for Dropbox Find the stock by name or ticker symbol: DBX. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Dropbox reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of USD$19.53, weigh your budget against a diversified portfolio that can minimize risk through the market's ups and downs. You may be able to buy a fractional share of Dropbox, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Dropbox. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
How has coronavirus impacted Dropbox's share price?
Since the stock market crash in March caused by coronavirus, Dropbox's share price has had significant negative movement.
Its last market close was USD$19.53, which is 13.01% down on its pre-crash value of USD$22.45 and 34.23% up on the lowest point reached during the March crash when the shares fell as low as USD$14.55.
If you had bought USD$1,000 worth of Dropbox shares at the start of February 2020, those shares would have been worth USD$1,011.89 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$1,155.00.
Dropbox share price
Use our graph to track the performance of DBX stocks over time.Dropbox shares at a glance
Information last updated 2020-09-21.
| Latest market close | USD$19.53 |
|---|---|
| 52-week range | USD$14.55 - USD$24.14 |
| 50-day moving average | USD$20.5479 |
| 200-day moving average | USD$20.6279 |
| Wall St. target price | USD$28.11 |
| PE ratio | 243.75 |
| Dividend yield | N/A (0%) |
| Earnings per share (TTM) | USD$0.08 |
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Is it a good time to buy Dropbox stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
Dropbox price performance over time
Historical closes compared with the last close of $19.53
| 1 week (2020-09-12) | N/A |
|---|---|
| 1 month (2020-08-19) | N/A |
| 3 months (2020-06-23) | -17.42% |
| 6 months (2020-03-23) | 14.14% |
| 1 year (2019-09-19) | N/A |
|---|---|
| 2 years (2018-09-19) | N/A |
| 3 years (2017-09-19) | N/A |
| 5 years (2015-09-19) | N/A |
Is Dropbox under- or over-valued?
Valuing Dropbox stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Dropbox's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Dropbox's P/E ratio
Dropbox's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 244x. In other words, Dropbox shares trade at around 244x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Dropbox's PEG ratio
Dropbox's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.946. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Dropbox's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Dropbox's EBITDA
Dropbox's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$175.6 million.
The EBITDA is a measure of a Dropbox's overall financial performance and is widely used to measure a its profitability.
Dropbox financials
| Revenue TTM | USD$1.8 billion |
|---|---|
| Operating margin TTM | 0.8% |
| Gross profit TTM | USD$1.3 billion |
| Return on assets TTM | 0.35% |
| Return on equity TTM | 4.33% |
| Profit margin | 1.85% |
| Book value | $1.941 |
| Market capitalisation | USD$8 billion |
TTM: trailing 12 months
Shorting Dropbox shares
There are currently 20.7 million Dropbox shares held short by investors – that's known as Dropbox's "short interest". This figure is 4.1% up from 19.9 million last month.
There are a few different ways that this level of interest in shorting Dropbox shares can be evaluated.
Dropbox's "short interest ratio" (SIR)
Dropbox's "short interest ratio" (SIR) is the quantity of Dropbox shares currently shorted divided by the average quantity of Dropbox shares traded daily (recently around 7.2 million). Dropbox's SIR currently stands at 2.85. In other words for every 100,000 Dropbox shares traded daily on the market, roughly 2850 shares are currently held short.
However Dropbox's short interest can also be evaluated against the total number of Dropbox shares, or, against the total number of tradable Dropbox shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Dropbox's short interest could be expressed as 0.05% of the outstanding shares (for every 100,000 Dropbox shares in existence, roughly 50 shares are currently held short) or 0.0698% of the tradable shares (for every 100,000 tradable Dropbox shares, roughly 70 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Dropbox.
Find out more about how you can short Dropbox stock.
Dropbox share dividends
We're not expecting Dropbox to pay a dividend over the next 12 months.
Dropbox share price volatility
Over the last 12 months, Dropbox's shares have ranged in value from as little as $14.55 up to $24.14. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Dropbox's is 0.8168. This would suggest that Dropbox's shares are less volatile than average (for this exchange).
Dropbox overview
Dropbox, Inc. provides a collaboration platform worldwide. The company's platform allows individuals, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. As of December 31, 2019, it had approximately 600 million registered users across 180 countries. The company was formerly known as Evenflow, Inc. and changed its name to Dropbox, Inc. in October 2009. Dropbox, Inc. was founded in 2007 and is headquartered in San Francisco, California.
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