| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 199.90 | 22 |
| Intrinsic value (DCF) | 423.79 | 158 |
| Graham-Dodd Method | 77.10 | -53 |
| Graham Formula | 1033.50 | 529 |
Coinbase Global, Inc. (1QZ.DE) is a leading financial infrastructure and technology provider for the cryptoeconomy, headquartered in Wilmington, Delaware. Operating globally, Coinbase serves as a primary financial account for consumers in the crypto space, a liquidity-rich marketplace for institutional crypto transactions, and a developer platform for crypto-based applications. Founded in 2012, Coinbase has established itself as a key player in the Financial Services sector, specifically within the Data & Stock Exchanges industry. The company's robust platform enables secure crypto transactions, making it a cornerstone of the digital asset ecosystem. With a market capitalization of approximately €59.5 billion, Coinbase is a dominant force in the rapidly evolving cryptocurrency market, catering to both retail and institutional investors.
Coinbase presents a high-risk, high-reward investment opportunity, underscored by its significant market capitalization and leadership in the crypto infrastructure space. The company's revenue of €6.56 billion and net income of €2.58 billion in the latest fiscal year highlight its profitability, despite the volatile nature of the cryptocurrency market. However, its high beta of 3.625 indicates substantial sensitivity to market fluctuations, which could pose risks for investors. Coinbase's strong operating cash flow of €2.56 billion and substantial cash reserves of €8.54 billion provide a solid financial cushion. Nonetheless, the absence of dividends and the inherent volatility of the crypto market may deter conservative investors.
Coinbase's competitive advantage lies in its first-mover status, brand recognition, and comprehensive suite of crypto services, which cater to a broad spectrum of users from retail investors to large institutions. The company's liquidity pool and secure platform are key differentiators in a market rife with security concerns and regulatory scrutiny. However, Coinbase faces intense competition from both traditional financial institutions venturing into crypto and specialized crypto exchanges. Regulatory challenges and the evolving nature of cryptocurrency laws globally add another layer of complexity to its competitive positioning. Despite these challenges, Coinbase's technological infrastructure and user trust position it well to capitalize on the growing adoption of digital assets.