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Valuation of Coinbase (COIN)
14 Apr 2021 (307 views)

Coinbase is an exchange for trading crypto currencies. It will listed on 14 April 2021 at a valuation of $100 billion. 

However, this article in Forbes gave it a valuation of $20 billion. 

https://www.forbes.com/sites/petercohan/2021/04/13/coinbase-is-not-worth-100b-and-its-stock-could-double-on-its-ipo/?sh=6f8ac1f1461c

The latest financial report for Coinbase shows a revenue of $1,277 million and a net income of $322 million.

At a valuation of $100 billion, the PE ratio is 310 times. At $20 billion, the PE ratio is 62 times. 

Coinbase saw a rapid growth in its revenue in 2020 due to the strong interest in bitcoin and other crypto currencies. The future growth is likely to be moderate.

I think that the valuation of $20 billion is closer to its true value. $100 billion would be far too high.

Whether at $20 billion or $100 billion, I am not interested to invest in this stock.

Here is a video that explains this stock. It explains the bullish case for this stock. The growth rate is incredible. 

https://www.youtube.com/watch?v=cP6Y6MqZduE


Tan Kin Lian


Valuation of Coinbase (COIN)
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Coinbase is an exchange for trading crypto currencies. It will listed on 14 April 2021 at a valuation of $100 billion. 

However, this article in Forbes gave it a valuation of $20 billion. 

https://www.forbes.com/sites/petercohan/2021/04/13/coinbase-is-not-worth-100b-and-its-stock-could-double-on-its-ipo/?sh=6f8ac1f1461c

The latest financial report for Coinbase shows a revenue of $1,277 million and a net income of $322 million.

At a valuation of $100 billion, the PE ratio is 310 times. At $20 billion, the PE ratio is 62 times. 

Coinbase saw a rapid growth in its revenue in 2020 due to the strong interest in bitcoin and other crypto currencies. The future growth is likely to be moderate.

I think that the valuation of $20 billion is closer to its true value. $100 billion would be far too high.

Whether at $20 billion or $100 billion, I am not interested to invest in this stock.

Here is a video that explains this stock. It explains the bullish case for this stock. The growth rate is incredible. 

https://www.youtube.com/watch?v=cP6Y6MqZduE


Tan Kin Lian