Box Valuation

Box Inc, the cloud-based content management, collaboration and file sharing firm, which caters to corporations has a market capitalisation of 4.82 billion USD on the New York Stock Exchange.

In my view, the intrinsic value of Box Inc stands at 22 billion USD. 

Four factors form my opinion why Box is significantly undervalued.

 1)  Cloud computing is the future

 2)  Corporations do tend more frequently to pay for internet services such as Box's cloud storage and content management product, while consumers are often reluctant to pay as evidenced by the less stellar stock price peroformance of Dropbox Inc, which essentially offers a similar product to Box Inc's, but aims at the consumer market 

3)  Box's revenue is still growing with double digit numbers for quarter on quarter for the last reported quarter and

 4)  Box showed that it could be profitable in the last reported quarter

Combined all these factors and market perception help explain why for one rolling year back period Box's stock price has increased by 27.12 % while the Nasdaq Composite has shed 15.03 % of its point value. Box Inc's stock price performance is even more remarkable, now that we have rising rates environment, which makes business as usual for your technology companies, also for more mature, but still mid capitalisation technology companies like Box Inc extremely difficult, since most young tech businesses are not profitable, burning cash and depend on raising capital to survive ant ultimately prosper in the future.

In short, my thesis is the following: cloud computing is the present and future of computing and thus the future of global business and the global economy. Cloud security is vital for large businesses, especially. And Box Inc seems well positioned, at least currently to profit from these two mega trends in information technology.