Coinbase Global (COIN) Backs Token Mortgages, Is The Stock Still Undervalued?
Coinbase Global (COIN) is back in focus after Better Home & Finance expanded general availability of its token backed mortgage products, which are powered by Coinbase and tailored to Fannie Mae conforming guidelines.
The Better partnership has arrived after a sharp run for Coinbase Global, with the share price up 11.59% over the past month, even after a 6.33% one day pullback to US$178.64. Over the past year, the total shareholder return has declined 41.34%, but the 3 year total shareholder return remains very strong. This suggests that recent momentum is rebuilding on a longer record of large gains.
Scan how Coinbase Global compares with other listed crypto and blockchain plays using a curated set of 19 cryptocurrency and blockchain stocks positioned for this kind of token-backed financing momentum.Coinbase Global now sits between fresh product momentum and a share price that has already moved a long way over three years. Does the current setup still offer an attractive balance between risk and potential reward for new buyers?
Most Popular Narrative: 27.8% Undervalued
At a last close of $178.64, the most followed narrative on Coinbase Global points to a fair value of $247.39, which implies a sizeable upside gap that this view is trying to explain.
The simplest way I can think about it is that Coinbase behaves a bit like a leveraged crypto proxy. If crypto prices rise materially over the next 5–10 years, Coinbase’s earnings power could expand much faster than the underlying asset because a lot of the operating base should be relatively stable.
Want to see what turns that view into a concrete number for Coinbase Global? The narrative leans on a step change in revenue, a much higher profit margin profile and a premium earnings multiple. Curious which combinations of those inputs are doing the heavy lifting in that $247.39 fair value.
Result: Fair Value of $247.39 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this Coinbase Global narrative still faces clear risks if crypto trading volumes stay muted or if regulation limits growth in higher margin custody and subscription lines.
Find out about the key risks to this Coinbase Global narrative.
Another View on Coinbase Global Using Sales Multiples
The user narrative points to Coinbase Global looking 27.8% undervalued at $178.64 with a fair value of $247.39. Our P/S based work presents a different perspective. At 7.8x sales, Coinbase trades at roughly double the US Capital Markets average of 3.8x and also above a fair ratio of 4.7x, even though it is below a peer average of 9.8x. For investors, that mix suggests meaningful valuation risk if sentiment cools from current levels. Which version of “fair” feels closer to your own comfort zone on Coinbase Global?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
If the mixed signals on Coinbase Global leave you uncertain, that is normal for a stock tied closely to crypto sentiment. Act while the data is fresh and weigh the potential upside yourself by checking the 1 key reward.
Looking for more investment ideas beyond Coinbase Global?
If Coinbase Global has your attention, do not stop there. Broaden your watchlist with other clear setups where fundamentals, value and resilience come together.
- Target potential bargains by scanning companies that combine quality with attractive pricing through the 45 high quality undervalued stocks.
- Strengthen your income focus by hunting for reliable high yield opportunities with the 12 dividend fortresses.
- Prioritize stability by concentrating on companies with robust finances using the list of solid balance sheet and fundamentals (51 results).
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com