Overview
Coinbase (NASDAQ: COIN) currently trades at $355.80 per share with a market capitalization of $90.62 billion. Our automated analysis reveals average fundamentals with 10/33 due diligence checks passed.
Key Valuation Metrics
- Fair Value Estimate: $148.96 (DCF model suggests 138.86% overvaluation)
- Benjamin Graham Formula Value: $47.90 (645.5% above current price)
- P/E Ratio: 60.31x (vs industry average 39.64x)
- P/B Ratio: 8.66x (vs industry average 5.65x)
- PEG Ratio: 8.63x (indicates poor growth-adjusted value)
Detailed Valuation Assessment
Discounted Cash Flow Analysis
👉 Understanding DCF models reveals COIN trades at a significant premium to our calculated fair value. Investors should consider:
- Conservative cash flow projections
- Market sentiment toward crypto platforms
- Volatility in trading revenue streams
Comparative Metrics
| Metric | COIN | Industry Avg | Market Avg |
|---|---|---|---|
| P/E | 60.31x | 39.64x | 30.96x |
| P/B | 8.66x | 5.65x | - |
| PEG | 8.63x | - | - |
Financial Health Indicators
COIN demonstrates mixed financial health:
Positive:
- $17.45B short-term assets vs $6.93B liabilities
- $1.96B operating cash flow covers $4.51B debt
Concerns:
- Debt/equity ratio of 1.08
- Profit margin decline (-12.9% YoY)
Peer Comparison
| Ticker | Market Cap | P/E | P/B | Rating |
|---|---|---|---|---|
| MCO | $90.86B | 43.43x | 24.56x | C |
| CME | $99.71B | 27.75x | 3.69x | C |
| ICE | $105.04B | 37.75x | 3.75x | C |
| NDAQ | $51.71B | 40.39x | 4.48x | C |
Investment Considerations
- Growth Potential: Crypto market expansion could justify premium valuation
- Risk Factors: Regulatory challenges and crypto volatility
- Alternative Investments: Consider diversified financial service providers
FAQs
Q: Is Coinbase stock overvalued?
A: Our DCF model suggests COIN trades 138.86% above fair value, though growth expectations may justify some premium.
Q: How does Coinbase compare to traditional financial exchanges?
A: COIN trades at higher multiples than CME/ICE but offers pure-play crypto exposure.
Q: What are the main financial risks for Coinbase?
A: High debt/equity ratio (1.08) and declining profit margins (-12.9% YoY) warrant caution.
Q: Should I invest in Coinbase for long-term growth?
A: While positioned in the growing crypto sector, valuation metrics suggest waiting for better entry points. 👉 Learn about crypto market trends for informed decisions.
Q: How does Coinbase's P/E compare to the market?
A: At 60.31x, it's nearly double the US market average (30.96x) and 50% above industry peers.
Q: What's Coinbase's most attractive financial metric?
A: Strong liquidity position with $17.45B short-term assets covering liabilities 2.5x over.