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The 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
by tn13 13y ago
The 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.
- deleted 13y ago[deleted]
- ankitoberoi 13y agoTrue, 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.