Re:Dropbox close to choosing investors — Round could put val...
by kcg on Saturday August 06, 2011 @12:06PM
(#2854164)
I'd be amazed if Dropbox had a 50% profit (net income) margin. It's likely that their gross margin is around there, but you still have to subtract SG&A and other expenses to get down to net income.
If Dropbox pulls in $100 million in revenue this year, a $10 billion valuation is 100x revenue. That is a very high multiple.
If Dropbox pulls in $100 million in revenue this year, a $10 billion valuation is 100x revenue. That is a very high multiple.