Why Dropbox (DBX) is a Top Value Stock for the Long-Term

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Dropbox offers a cloud-based platform that businesses and individuals can create, access and share digital content globally. It serves more than 700 million registered users across approximately 180 countries.

DBX boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #2 (Buy) rating. Shares of Dropbox are trading at a forward earnings multiple of 10.8X , as well as a PEG Ratio of 2.5, a Price/Cash Flow ratio of 12.2X, and a Price/Sales ratio of 3.1X.

Many value investors pay close attention to a company's earnings as well. For DBX, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $2.68 per share for 2025. DBX boasts an average earnings surprise of 14.7%.

Investors should take the time to consider DBX for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Dropbox, Inc. (DBX) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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