COIN I have run the numbers on Coinbase, by using the discount cash flow model to try and accurately determine a good price on the stock (by estimating future cash flows the company will generate). According to the DCF model with a 5 year exit, and a discount rate of 8.3% the intrinsic valuation of the stock is $238. The range of the intrinsic value using a discount rate between 7.2% and 9.4% is $171 to $410. It looks possible to reach these levels on a technical level as well. I am not shorting Coinbase but I am definitely going to pay attention to it closely to buy more shares later.
In comparison to its competitors like Robinhood Markets or Charles Schwab, thanks to the earnings report it is quite a bit cheaper in terms of intrinsic valuation. I think Coinbase is a great option for exposure to crypto and we will have some great opportunities to invest for the long term this month so long as the tariffs keep doing what they have been doing.
