It's been a great morning session for Coinbase Global investors, who saw their shares rise 1.5% to a price of $79.33 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
Coinbase Global's P/B and P/E Ratios Are Higher Than Average:
Coinbase Global, Inc. provides financial infrastructure and technology for the cryptoeconomy in the United States and internationally. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 14.34 and an average price to book (P/B) ratio of 1.57. In contrast, Coinbase Global has a trailing 12 month P/E ratio of -14.5 and a P/B ratio of 3.27.
Coinbase Global has moved 17.0% over the last year compared to 19.0% for the S&P 500 — a difference of -2.0%. Coinbase Global has a 52 week high of $114.43 and a 52 week low of $31.55.
The Company Has a Positive Net Current Asset Value:
| 2022-02-25 | 2023-02-21 | |
|---|---|---|
| Revenue (MM) | $7,839 | $3,194 |
| Interest Income (MM) | -$29 | -$89 |
| Operating Margins | 39% | -84% |
| Net Margins | 46.0% | -82.0% |
| Net Income (MM) | $3,624 | -$2,625 |
| Depreciation & Amort. (MM) | -$64 | -$154 |
| Earnings Per Share | $14.47 | -$11.88 |
| EPS Growth | n/a | -182.1% |
| Diluted Shares (MM) | 251 | 221 |
| Free Cash Flow (MM) | $4,019 | -$1,644 |
| Capital Expenditures (MM) | -$3 | -$3 |
| Net Current Assets (MM) | $3,481 | $2,178 |
| Long Term Debt (MM) | $3,385 | $3,393 |
| LT Debt to Equity | 0.53 | 0.62 |
Coinbase Global has weak revenue growth and a flat capital expenditure trend, irregular cash flows, and just enough current assets to cover current liabilities. We also note that the company has low debt levels working in its favor. However, the firm suffers from consistently negative margins with a negative growth trend and declining EPS growth.
