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Is Dropbox preparing for an IPO?

While Dropbox has said in the past it doesn’t plan to IPO “any time soon,” next year isn’t really “soon,” considering the comments came last November. One thing on many investors’ minds though will be the valuation.

The company had previously been valued at $10 billion. But that was about two years ago. Since then, several investors have written down the value. That makes sense too, given the valuation of its nearest competitor, Box (NYSE:BOX), which has a valuation of just $1.6 billion.

Dropbox is apparently free-cash flow positive, but not yet profitable. For what it’s worth, Box’s current market cap is about one-third below the valuation it had as a private company. Only time will tell.