Box Inc Class A

BOX: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$27.00	Hftfg	Fmtjnsxxg

Box Kicks Off Fiscal 2023 With a Strong Showing; Maintain FVE; Shares Undervalued

Malik Ahmed Khan

May 25, 2022

We are maintaining our fair value estimate for Box of $30 after the company started its fiscal 2023 with strong financial results narrowly above our estimates. While the firm’s financial results have been solid over the last few quarters, we reiterate our opinion that Box faces an uphill battle in a competitive landscape marred by legacy ecosystems. While Box’s business does not warrant an economic moat, the firm has continued to maintain strong upselling activity, evidenced by the firm’s solid net retention rate. With shares trading around $25 after market close, we think Box is undervalued.

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