Latest Ratios: P/E Ratio 18.2x · EV/EBITDA 13.8x · ROE N/A. (2015–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $8.6B | $7.6B | $9.7B | $10.2B | $8.1B | $9.7B | $9.2B | $7.4B | $7.3B | — | — |
| Enterprise Value | $11.7B | $10.6B | $11.4B | $11.6B | $10.2B | $11.5B | $10.0B | $7.8B | $7.0B | — | — |
| P/E Ratio → | 18.23 | 14.95 | 21.46 | 22.50 | 14.72 | 28.87 | — | — | — | — | — |
| P/S Ratio | 3.42 | 3.01 | 3.81 | 4.07 | 3.50 | 4.50 | 4.80 | 4.44 | 5.26 | — | — |
| P/B Ratio | — | — | — | — | — | — | 27.54 | 9.12 | 10.82 | — | — |
| P/FCF | 9.27 | 8.15 | 11.15 | 13.42 | 10.66 | 13.86 | 18.74 | 18.87 | 20.38 | — | — |
| P/OCF | 9.06 | 7.97 | 10.87 | 13.00 | 10.20 | 13.31 | 16.11 | 13.95 | 17.22 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.22 | 4.47 | 4.64 | 4.38 | 5.35 | 5.22 | 4.71 | 5.01 | — | — |
| EV / EBITDA | 13.76 | 12.53 | 18.26 | 16.37 | 30.12 | 27.12 | — | 84.16 | — | — | — |
| EV / EBIT | 16.89 | 14.52 | 23.41 | 30.26 | 28.59 | 37.78 | 82.49 | — | — | — | — |
| EV / FCF | — | 11.43 | 13.06 | 15.29 | 13.37 | 16.48 | 20.38 | 20.03 | 19.40 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 80.1% | 80.1% | 82.5% | 80.9% | 80.9% | 79.4% | 78.3% | 75.3% | 71.6% | 66.7% | 53.8% |
| Operating Margin | 27.4% | 27.4% | 19.1% | 21.5% | 7.8% | 12.7% | -14.5% | -4.8% | -35.5% | -10.3% | -22.9% |
| Net Profit Margin | 20.2% | 20.2% | 17.7% | 18.1% | 23.8% | 15.6% | -13.4% | -3.2% | -34.8% | -10.1% | -24.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | 1683.2% | -44.9% | -7.1% | -124.4% | -99.0% | -136.3% |
| ROA | 16.3% | 16.3% | 14.3% | 14.9% | 17.8% | 12.3% | -10.1% | -2.4% | -35.7% | -11.0% | -20.9% |
| ROIC | 47.8% | 47.8% | 33.7% | 26.9% | 8.3% | 15.4% | -17.3% | -7.6% | -440.0% | — | -181.2% |
| ROCE | 44.1% | 44.1% | 25.0% | 29.2% | 9.5% | 17.1% | -18.6% | -6.3% | -86.8% | -35.0% | -45.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | 3.35 | 1.25 | 0.24 | 1.69 | 2.09 |
| Debt / EBITDA | 4.64 | 4.64 | 4.81 | 2.87 | 6.78 | 5.56 | — | 10.82 | — | 2.56 | — |
| Net Debt / Equity | — | — | — | — | — | — | 2.41 | 0.56 | -0.53 | -2.48 | -0.78 |
| Net Debt / EBITDA | 3.59 | 3.59 | 2.68 | 2.00 | 6.09 | 4.31 | — | 4.90 | — | -3.75 | — |
| Debt / FCF | — | 3.28 | 1.91 | 1.86 | 2.70 | 2.62 | 1.64 | 1.17 | -0.99 | -0.84 | -0.74 |
| Interest Coverage | 6.38 | 6.38 | 19.37 | 25.23 | 28.75 | 24.07 | 11.22 | -7.82 | — | -10.34 | -11.80 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.62 | 0.62 | 1.44 | 1.26 | 1.25 | 1.57 | 1.13 | 1.23 | 1.45 | 0.70 | 0.65 |
| Quick Ratio | 0.62 | 0.62 | 1.44 | 1.26 | 1.25 | 1.57 | 1.13 | 1.23 | 1.45 | 0.70 | 0.65 |
| Cash Ratio | 0.55 | 0.55 | 1.32 | 1.13 | 1.12 | 1.46 | 1.03 | 1.14 | 1.30 | 0.58 | 0.56 |
| Asset Turnover | — | 0.86 | 0.77 | 0.84 | 0.75 | 0.70 | 0.80 | 0.62 | 0.82 | 1.09 | 0.84 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 11.45 | 10.08 | 10.02 | 8.45 | 8.39 | 8.28 | 8.06 | 7.50 | 9.66 | 5.70 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.5% | 6.7% | 4.7% | 4.4% | 6.8% | 3.5% | — | — | — | — | — |
| FCF Yield | 10.8% | 12.3% | 9.0% | 7.5% | 9.4% | 7.2% | 5.3% | 5.3% | 4.9% | — | — |
| Buyback Yield | 19.9% | 22.6% | 12.8% | 5.3% | 9.8% | 10.9% | 4.3% | 0.0% | 4.8% | — | — |
| Total Shareholder Yield | 19.9% | 22.6% | 12.8% | 5.3% | 9.8% | 10.9% | 4.3% | 0.0% | 4.8% | — | — |
| Shares Outstanding | — | $273M | $323M | $346M | $363M | $396M | $414M | $412M | $359M | $393M | $359M |
Includes 30+ ratios · 11 years · Updated daily
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Quick answers to the most common questions about buying DBX stock.
Dropbox, Inc.'s current P/E ratio is 18.2x. The historical average is 20.5x. This places it at the 40th percentile of its historical range.
Dropbox, Inc.'s current EV/EBITDA is 13.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 31.4x.
Based on historical data, Dropbox, Inc. is trading at a P/E of 18.2x. This is at the 40th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Dropbox, Inc. has 80.1% gross margin and 27.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Dropbox, Inc.'s Debt/EBITDA ratio is 4.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
AI integration by incumbents
Metrics are mathematically derived from official filings.
Margin Resilience Amid Revenue Plateau
Dropbox's gross margin contracted 300 basis points to 80.2% by Q2 2026, yet operating margin expanded to 26.1%, reflecting disciplined cost control, as per recent financial statements.
The gross margin decline from 83.2% in Q1 2024 to 80.2% in Q2 2026 suggests rising infrastructure or service costs, possibly tied to AI feature development. However, operating margin rebounded from a low of 13.7% in Q4 2024 to 26.1%, indicating that management's expense discipline has more than offset the gross margin pressure. Net margin of 15.2% in Q2 2026, while lower than the 21.0% in Q1 2024, remains healthy, but investors should note that stock-based compensation averaging $77 million per quarter tempers the quality of reported earnings.
ROIC Recovery Signals Efficiency Gains
ROIC improved from 8.8% in Q1 2024 to 16.3% by Q2 2026, driven by margin expansion and asset efficiency, according to quarterly financial data.
The doubling of ROIC over ten quarters indicates that Dropbox is generating more operating profit per dollar of invested capital, a sign of improving capital efficiency. This improvement is primarily margin-driven, as asset turnover remained stable around 0.22. The trend suggests that the company is effectively leveraging its fixed-cost infrastructure, though the negative equity base complicates ROE analysis, which is unavailable. Investors should monitor whether ROIC can sustain this level as the company invests in AI capabilities.
Working Capital Efficiency Holds Steady
DSO remained stable at 10-11 days over the past ten quarters, while DPO fluctuated between 20 and 30 days, indicating consistent working capital management, as reported in financial statements.
The stable DSO suggests efficient collections, typical for a subscription model with upfront billing. DPO variability may reflect timing of payments to suppliers, but the overall cash conversion cycle appears negative, implying that Dropbox collects cash from customers before paying suppliers, a favorable position. This efficiency supports the company's robust free cash flow margin of 37.2% in Q2 2026, though the lack of inventory data is consistent with a software business.
Debt Service Comfort Wanes as Leverage Rises
Interest coverage fell from 33.85x in Q1 2024 to 3.35x by Q2 2026, while D/EBITDA climbed to 19.76x, indicating a significantly tighter debt service position, based on recent balance sheet data.
The dramatic decline in interest coverage reflects both rising debt levels and potentially higher interest rates, as total debt doubled to $4.0 billion. The D/EBITDA ratio of 19.76x is exceptionally high, suggesting that EBITDA may be understated due to stock-based compensation or that debt has grown faster than earnings. This trend warrants close monitoring, as the company's aggressive buybacks have been funded by debt, and any further deterioration could strain credit metrics.
Liquidity Buffer Thins Despite Cash Rise
Current ratio fell from 1.15 in Q1 2024 to 1.07 in Q2 2026, even as cash increased to $1.1 billion, indicating a tighter short-term liquidity position, as per quarterly filings.
The decline in the current ratio suggests that current liabilities have grown faster than current assets, possibly due to increased deferred revenue or short-term debt. While the quick ratio equals the current ratio, indicating no inventory dependence, the thin buffer leaves limited room for error under stress. However, the company's robust free cash flow generation of $283.5 million in Q2 2026 provides a cushion, though investors should monitor whether the liquidity position stabilizes.
Misapplied P/E Obscures Cash Generation
The trailing P/E of 18.51 understates Dropbox's value because it ignores the company's high cash conversion and buyback-driven EPS growth, as evidenced by P/FCF of 9.41.
Commonly, investors apply a SaaS-like P/E multiple to Dropbox, but this fails to account for the company's mature, cash-generative profile. The P/FCF of 9.41 is far more attractive, reflecting the company's ability to convert earnings into cash, with OCF/NI averaging 2.1x. Additionally, aggressive buybacks have reduced share count, inflating EPS growth, which may not be sustainable if funded by debt. A more appropriate valuation metric would be EV/EBITDA or P/FCF, adjusted for stock-based compensation, to capture the true economic earnings power.