�Lizette Chap­man and Drew Singer

How Much for Drop­box?

Bloomberg Businessweek (North America) - - Markets / Finance -

Vericime­try U.S. Small Cap Value Fund who teaches at the Univer­sity of Florida. But money man­agers have lim­ited in­for­ma­tion about their com­peti­tors’ method­olo­gies.

Val­u­a­tion dis­crep­an­cies also ex­ist for Wework, Snapchat, and oth­ers. In De­cem­ber, val­u­a­tions of data­base soft­ware com­pany Mon­godb ranged from $8.06 a share to $18.55 a share.

Josh James, founder and chief ex­ec­u­tive of­fi­cer of busi­ness an­a­lyt­ics startup Domo, says announceme­nts of fluc­tu­at­ing val­u­a­tions can be dis­tract­ing for em­ploy­ees. Domo’s back­ers in­clude Black­rock, T. Rowe Price, and Fi­delity. In Jan­uary, Fi­delity marked down its val­u­a­tion by 9 per­cent fol­low­ing a se­ries of markups. Fi­delity de­clined to com­ment on its process. “Peo­ple that aren’t ex­perts at valu­ing pri­vate com­pa­nies are try­ing to act like ex­perts,” James says. “Even when they have less in­for­ma­tion than the VCS.”

Per-share value es­ti­mates by mu­tual fund com­pany

Mor­gan Stan­ley In­vest­ment Man­age­ment ▶ The bot­tom line De­pend­ing on which mu­tual fund you in­vested in, a share in Drop­box was worth about $10, or maybe $15.

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