Dropbox Could Be A Bargain At An $8 Billion Valuation
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Dropbox Could Be A Bargain At An $8 Billion Valuation
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Re: Dropbox Could Be A Bargain At An $8 Billion Valuation
#2The analysis sounds a bit absurd to me. It does not matter if Dropbox is making $1B or $0.5B, what matters is how much profit are they making and if that method of making profits is scalable.
If a company that is making $1B in yearly revenues is raising a paltry sum of $250m through investments I am not sure if they see themselves in good financial situation.
Re: Dropbox Could Be A Bargain At An $8 Billion Valuation
#3The Dropbox board obviously feels that an $8 Billion valuation is appropriate. As rational actors, they want to raise money at the highest valuation possible. They have more information than any TechCrunch blogger, so I highly doubt Dropbox is undervalued.
Re: Dropbox Could Be A Bargain At An $8 Billion Valuation
#4This seems like a very convoluted way of coming to the valuation. Revenue != profit. I can easily create business that generates $1bn/month in revenue by selling dollars for 90 cents. Dropbox may be worth $8bn, but surely it makes more sense to assess the valuation based on the growth in profitability?
Re: Dropbox Could Be A Bargain At An $8 Billion Valuation
#5Can we please redefine what bargain means?
Re: Dropbox Could Be A Bargain At An $8 Billion Valuation
#6The analysis sounds a bit absurd to me. It does not matter if Dropbox is making $1B or $0.5B, what matters is how much profit are they making and if that method of making profits is scalable. If a company that is making $1B in yearly revenues is raising a paltry sum of $250m through investments I am not sure if they see themselves in good financial situation.
True, a better way to ascertain value is by factoring in the profits, which is why you have the P/E ratios. However, it is not uncommon to use revenues to calculate value as well.
It is also important to note that they are not making $1B yet, but have just hit a run-rate of $1B. Having $250M in cash is a different thing.
Re: Dropbox Could Be A Bargain At An $8 Billion Valuation
#7This seems like a very convoluted way of coming to the valuation. Revenue != profit. I can easily create business that generates $1bn/month in revenue by selling dollars for 90 cents. Dropbox may be worth $8bn, but surely it makes more sense to assess the valuation based on the growth in profitability?
Indeed. Especially given that Dropbox uses Amazon for the actual storage and the massive scale, I wonder what % of that revenue ends up in Amazon's pockets.
Re: Dropbox Could Be A Bargain At An $8 Billion Valuation
#8Considering that Dropbox are completely dependant on Amazon for their service and overnight Amazon could sink them "ooops your instances just got deleted, oops"
8 billion is a bit of a joke
Now if they owned their own equipment in their own datacenters...
Re: Dropbox Could Be A Bargain At An $8 Billion Valuation
#9The analysis sounds a bit absurd to me. It does not matter if Dropbox is making $1B or $0.5B, what matters is how much profit are they making and if that method of making profits is scalable. If a company that is making $1B in yearly revenues is raising a paltry sum of $250m through investments I am not sure if they see themselves in good financial situation.
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Re: Dropbox Could Be A Bargain At An $8 Billion Valuation
#10When was the last time techcrunch posted something worth reading?