Is Dropbox, Inc. overvalued or undervalued?

As of 18 February 2021, the valuation grade for Dropbox, Inc. has moved from attractive to risky, indicating a shift in its perceived investment quality. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 18, which is lower than the industry average but coupled with a concerning price-to-book value of -7.71. Additionally, Dropbox's EV to EBITDA stands at 14.32, which, while competitive, does not justify its current valuation given the overall risk profile.
In comparison to peers, Dropbox's P/E ratio of 17.25 is significantly lower than GoDaddy, Inc.'s 32.65 and FactSet Research Systems, Inc.'s 31.75, both of which are considered expensive. Moreover, the PEG ratio of 0.41 suggests that the stock may not be growing at a rate that justifies its current price, reinforcing the notion that it is overvalued. Despite a strong one-year stock return of 29.78% compared to the S&P 500's 10.26%, the overall financial indicators and peer comparisons suggest caution for potential investors.