Coinbase Global currently holds $3.49 billion in liabilities, with a Debt to Equity (D/E) ratio of 0.65. This is approximately average compared to similar companies. On a performance scale of 0 to 100, Coinbase Global scores 11. The company has a Beta (market volatility) of 2.2618, indicating a somewhat significant risk relative to the market.
To understand what this Beta means for Coinbase, consider this: as the market rises, the company is expected to outperform it. However, if the market experiences negative returns, Coinbase Global will likely underperform.
While it's crucial to track Coinbase Global's historical returns, it's also wise to be conservative about how to use the information related to the current trending patterns of the equity. The philosophy for forecasting any stock's future performance involves evaluating the business as a whole, along with its past performance. This includes all available fundamental and technical indicators.
We have identified twenty-one technical indicators for Coinbase Global that you can use to evaluate the company's performance. We recommend using Coinbase Global's information ratio, as well as the relationship between the potential upside and kurtosis, to make swift decisions on whether Coinbase Global's price patterns will revert.
Detailed examination of Coinbase Stock
Coinbase Global, a leader in the Financial Technology (Fintech) & Infrastructure industry, presents a compelling investment opportunity, despite some potential risks. The company's current valuation stands at
23.27B, with a market capitalization of
24.7B and an
enterprise value.of
23.3B. However, it's important to note that the company reported a loss in Ebit of 2.7B and a negative return on assets of 0.0133, indicating some financial instability. Furthermore, the company's EPS estimate for next year is projected to be a loss of 0.01, which could be a cause for concern. On the positive side, Coinbase Global has a healthy current ratio of 1.05X, suggesting that it can comfortably cover its short-term liabilities. Additionally, the company's cash flow at the beginning of the period was a robust
17.7B, indicating strong liquidity. Despite the potential risks, the company's strong position in the Fintech industry and solid financials suggest potential for bullish growth in August 2023.
We determine the current worth of Coinbase Global using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Coinbase Global based exclusively on its
fundamental and basic
technical indicators. By analyzing Coinbase Global's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Coinbase Global's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Coinbase Global. We calculate exposure to Coinbase Global's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Coinbase Global's related companies.
Coinbase Global Investment Alerts
Coinbase investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Coinbase Global performance across your portfolios.Please check all
investment alerts for Coinbase
Coinbase Global Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Coinbase value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Coinbase Global competition to find
correlations between indicators driving the intrinsic value of Coinbase.
Coinbase Global Gross Profit
Coinbase Global Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Coinbase Global previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Coinbase Global Gross Profit growth over the last 10 years. Please check Coinbase Global's
gross profit and other
fundamental indicators for more details.
Breaking down the case for Coinbase Global
The recent price roll up of Coinbase Global could raise concerns from insiders as the firm is trading at a share price of
105.31 on
42,218,100 in volume. The company directors and management may have good odds in positioning the firm resources to exploit
market volatility in
August. The stock standard deviation of daily returns for 90 days investing horizon is currently 6.05. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Coinbase Global partners.
Margins Breakdown
Coinbase profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Coinbase Global itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Coinbase Global profit margins.
| EBITDA Margin | (0.9) |
| Gross Margin | 0.89 |
| Profit Margin | (0.84) |
Coinbase Global Invested Capital is increasing over the last 5 years. Further, Coinbase Global Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 5 years.
As we approach August 2023, Coinbase Global, a leading player in the Financial Technology (Fintech) & Infrastructure industry, is showing signs of bullish growth. Despite reporting a net loss of $2.6 billion and a negative EBITDA of $1.5 billion, the company has a robust net asset value of
$89.72 billion and a book value of $24.20 per share. Coinbase's liquidity position is also solid, with a current ratio of 1.05X, indicating the company's ability to meet its short-term obligations. The company's total current assets stand at
$86.4 billion, with cash and short-term investments amounting to $5.3 billion. Moreover, Coinbase's shares float at 183.9 million, with 55.45% of these owned by institutions, reflecting the confidence of
institutional investors.in the company's prospects. The company's beta of 2.6 suggests higher volatility compared to the market, which could mean higher potential returns for risk-tolerant investors. However, investors should also consider the company's probability of bankruptcy at 18.78% and its debt to equity ratio of 0.65%. Despite these risks, Coinbase's position in the rapidly growing fintech industry and its strong asset base suggest potential upside in the coming months. .
Analysis of Coinbase Global
Given recent market trends, Coinbase Global, Inc. (COIN) offers an attractive investment opportunity with a potential upside of 11.71%. This potential gain, derived from detailed
financial analysis, indicates a promising path for the company's stock value. As a premier cryptocurrency exchange platform, Coinbase's performance is intrinsically linked to the overall health of the cryptocurrency market. With the increasing acceptance and adoption of digital currencies, Coinbase is well-positioned to leverage this expanding market. Investors should take this potential upside into account when assessing their investment strategies. As of July 15, 2023, Coinbase Global has a Downside Deviation of 4.62, a mean deviation of 4.09, and a Risk-Adjusted Performance of 0.1003. The
technical analysis of Coinbase Global provides a methodology to utilize historical prices and volume patterns to predict a pattern that approximates the direction of the company's future prices. In other words, this information can be used to determine if the company will likely reflect its model of historical prices and volume momentum, or if the prices will eventually revert. We have been able to gather and analyze data for nineteen technical drivers for Coinbase Global, which can be compared to its
competitors.
We encourage you to confirm Coinbase Global's information ratio, as well as the relationship between the potential upside and kurtosis to determine if Coinbase Global is priced correctly, assuming the market reflects its regular price of 105.31 per share. Given that Coinbase Global has a Jensen Alpha of 0.7045, we recommend that you verify Coinbase Global's current market performance to ensure the company can sustain itself in the future. In light of the recent 1 percent decline in Coinbase Global's stock, investors are urged to exercise caution. The analyst overall consensus currently stands at a 'Hold', with a total of 20 estimates considered. The valuation market value is at
$105.31, which is higher than the analyst target price estimated value of
$62.25. This suggests that the stock may be overvalued. Furthermore, the analyst number of sells (2) and strong sells (5) outweigh the number of buys (1) and strong buys (6), indicating a potential downside risk. However, the possible upside price of $114.78 and the naive expected forecast value of $108.72 suggest some potential for growth. Investors should weigh these factors carefully before making a decision. .
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Coinbase Global. Please refer to our
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