What Should You Know About Coinbase Global (COIN)?

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.