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Recent analyst commentary on Coinbase Global (COIN) has zeroed in on its push beyond pure crypto trading into stocks, ETFs, and prediction markets, with these product shifts now seen as a key influence on the share price.
See our latest analysis for Coinbase Global.
At a share price of US$227.73, Coinbase has recently seen a 28.91% 90 day share price decline and a 22.59% 1 year total shareholder return decline. The 3 year total shareholder return of about 3.3x still points to a strong longer term move, while headlines around Bank of America’s upgrade and Coinbase’s push into broader trading products sit in the background of this volatility.
If Coinbase’s push to become an everything exchange has your attention, it could be a good moment to look across high growth tech and AI stocks that are reshaping how markets operate.
With COIN down 28.91% over 90 days, showing a 22.59% decline in 1-year total return yet still reflecting about a 3.3x total return over 3 years, the key question is simple: is this a fresh entry point, or is the market already pricing in future growth?
Price-to-Earnings of 19.1x: Is it justified?
On a P/E of 19.1x at a last close of US$227.73, Coinbase screens as good value compared to both its peer group and the broader US market.
The P/E multiple compares the share price to earnings per share and is a quick way to see what investors are paying for each dollar of current earnings. For a business that operates a crypto focused trading and platform model, earnings can be sensitive to trading activity, so this yardstick may be particularly important.
Here, Coinbase is flagged as good value relative to similar companies, with its 19.1x P/E sitting below a peer average of 35.5x. It is also described as good value versus the US Capital Markets industry average P/E of 25.5x and sits just under an estimated fair P/E of 21.6x.
However, there are clear pressure points, including a 22.59% 1 year total return decline and annual net income growth of 5.51% in the wrong direction, that could challenge the story of the company as an everything exchange.
Find out about the key risks to this Coinbase Global narrative.
While the 19.1x P/E suggests Coinbase looks inexpensive against peers and the US Capital Markets industry, our DCF model points the other way. On this view, COIN at US$227.73 sits above an estimated future cash flow value of US$108.83, which flags valuation risk rather than a clear bargain.