Dropbox Stock Market Value
| DBX Stock | USD 22.98 0.22 0.97% |
| Symbol | Dropbox |
Dropbox Price To Book Ratio
Is Dropbox's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dropbox. If investors know Dropbox will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dropbox listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.28) | Earnings Share 1.31 | Revenue Per Share 7.332 | Quarterly Revenue Growth 0.06 | Return On Assets 0.0787 |
The market value of Dropbox is measured differently than its book value, which is the value of Dropbox that is recorded on the company's balance sheet. Investors also form their own opinion of Dropbox's value that differs from its market value or its book value, called intrinsic value, which is Dropbox's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dropbox's market value can be influenced by many factors that don't directly affect Dropbox's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dropbox's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dropbox is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dropbox's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Dropbox 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Dropbox's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Dropbox.
| 03/21/2024 |
| 04/20/2024 |
If you would invest 0.00 in Dropbox on March 21, 2024 and sell it all today you would earn a total of 0.00 from holding Dropbox or generate 0.0% return on investment in Dropbox over 30 days. Dropbox is related to or competes with Evertec, CSG Systems, Radware, and NetScout Systems. Dropbox, Inc. provides a content collaboration platform worldwide More
Dropbox Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Dropbox's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Dropbox upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.16) | |||
| Maximum Drawdown | 24.89 | |||
| Value At Risk | (2.51) | |||
| Potential Upside | 1.97 |
Dropbox Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Dropbox's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Dropbox's standard deviation. In reality, there are many statistical measures that can use Dropbox historical prices to predict the future Dropbox's volatility.| Risk Adjusted Performance | (0.07) | |||
| Jensen Alpha | (0.49) | |||
| Total Risk Alpha | (0.79) | |||
| Treynor Ratio | (0.37) |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Dropbox's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Dropbox Backtested Returns
Dropbox secures Sharpe Ratio (or Efficiency) of -0.16, which denotes the company had a -0.16% return per unit of risk over the last 3 months. Dropbox exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Dropbox's Mean Deviation of 1.39, variance of 9.59, and Standard Deviation of 3.1 to check the risk estimate we provide. The firm shows a Beta (market volatility) of 1.1, which means a somewhat significant risk relative to the market. Dropbox returns are very sensitive to returns on the market. As the market goes up or down, Dropbox is expected to follow. Dropbox has an expected return of -0.5%. Please make sure to confirm Dropbox potential upside, as well as the relationship between the rate of daily change and period momentum indicator , to decide if Dropbox performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.76 |
Good predictability
Dropbox has good predictability. Overlapping area represents the amount of predictability between Dropbox time series from 21st of March 2024 to 5th of April 2024 and 5th of April 2024 to 20th of April 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Dropbox price movement. The serial correlation of 0.76 indicates that around 76.0% of current Dropbox price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.76 | |
| Spearman Rank Test | 0.48 | |
| Residual Average | 0.0 | |
| Price Variance | 0.06 |
Dropbox lagged returns against current returns
Autocorrelation, which is Dropbox stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Dropbox's stock expected returns. We can calculate the autocorrelation of Dropbox returns to help us make a trade decision. For example, suppose you find that Dropbox has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Dropbox regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Dropbox stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Dropbox stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Dropbox stock over time.
Current vs Lagged Prices |
| Timeline |
Dropbox Lagged Returns
When evaluating Dropbox's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Dropbox stock have on its future price. Dropbox autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Dropbox autocorrelation shows the relationship between Dropbox stock current value and its past values and can show if there is a momentum factor associated with investing in Dropbox.
Regressed Prices |
| Timeline |
Pair Trading with Dropbox
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dropbox position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dropbox will appreciate offsetting losses from the drop in the long position's value.Moving together with Dropbox Stock
| 0.68 | JG | Aurora Mobile | PairCorr |
Moving against Dropbox Stock
| 0.86 | DTSS | Datasea | PairCorr |
| 0.75 | SQ | Block Inc Financial Report 2nd of May 2024 | PairCorr |
| 0.61 | EEFT | Euronet Worldwide Financial Report 7th of May 2024 | PairCorr |
| 0.58 | GB | Global Blue Group Downward Rally | PairCorr |
| 0.57 | NN | Nextnav Acquisition Corp Tech Boost | PairCorr |
The ability to find closely correlated positions to Dropbox could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dropbox when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dropbox - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dropbox to buy it.
The correlation of Dropbox is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dropbox moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dropbox moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dropbox can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Dropbox Correlation, Dropbox Volatility and Dropbox Alpha and Beta module to complement your research on Dropbox. For more information on how to buy Dropbox Stock please use our How to Invest in Dropbox guide.Note that the Dropbox information on this page should be used as a complementary analysis to other Dropbox's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Complementary Tools for Dropbox Stock analysis
When running Dropbox's price analysis, check to measure Dropbox's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dropbox is operating at the current time. Most of Dropbox's value examination focuses on studying past and present price action to predict the probability of Dropbox's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dropbox's price. Additionally, you may evaluate how the addition of Dropbox to your portfolios can decrease your overall portfolio volatility.
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Dropbox technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.