Re:Dropbox Files Confidentially for U.S. IPO
by wweidendorf on Friday January 12, 2018 @06:28AM
(#16132113)
You have your definition for Enterprise Value flipped - it should be (Equity Value + Total Debt - Cash & Equivalents + Non Controlling Interest). If you are subtracting debt and adding cash, you are typically looking to get equity value from EV.
Your Box multiples look to be correct - looks like they trade at 6.1x on a trailing twelve month revenue basis, and ~5.0x on a next twelve months revenue basis.
Given that Dropbox has a $10BN valuation and a $600MM line of credit from the big banks, I would expect that their trailing revenue multiple is ~10.0x.
The real issue for me is that file storage is ultimately low profit margin business when the growth maxes out. The end game comes in next 5 - 10 years during a downturn and Amazon, Google, Microsoft, Facebook, or some Chinese company buys one or both of them out and gets the brand and the customers.