Is Dropbox, Inc. overvalued or undervalued?

As of 18 February 2021, the valuation grade for Dropbox, Inc. moved from attractive to risky. The company appears to be overvalued given its current metrics. Notable ratios include a P/E ratio of 18, an EV to EBITDA of 14.32, and a PEG ratio of 0.41, which suggest that the stock may not be justified at its current price level. In comparison, FactSet Research Systems, Inc. has a P/E of 28.40 and an EV to EBITDA of 18.56, while Akamai Technologies, Inc. shows a P/E of 22.51 and an EV to EBITDA of 11.29, indicating that Dropbox is lagging behind its peers in terms of valuation.
In terms of stock performance, Dropbox has underperformed relative to the S&P 500 over the 3-year and 5-year periods, with returns of 41.89% and 59.70% respectively, compared to the S&P 500's 70.41% and 96.61%. This underperformance reinforces the notion that Dropbox may be overvalued in the current market environment.