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Coinbase Global, Inc. Class A Common Stock (COIN) — WACC Analysis

WACC Breakdown

Coinbase Global, Inc. Class A Common Stock (COIN) has a weighted average cost of capital (WACC) of 12.3%. The cost of equity is 13.7%, derived from a beta of 2.67 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.0%. The capital structure is 87.9% equity and 12.1% debt.

Interpretation

A WACC of 12.3% indicates that the market perceives Coinbase Global, Inc. Class A Common Stock as higher-risk, requiring a greater return to compensate investors.

Investors can compare COIN's WACC of 12.3% against industry peers to gauge its relative financing costs. A beta of 2.67 reflects the stock's volatility relative to the broader market.

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VALUATION

COIN WACC: 12.26% for Coinbase Global, Inc. Class A Common Stock

Current inputs imply a 13.67% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Coinbase Global, Inc. Class A Common Stock Common Stock (COIN) WACC Results
Weighted Average Cost of Capital
12.26%
Cost of Equity
13.67%
Risk-Free Rate4.73%
Beta2.67
Market Risk Premium4.23%
Cost of Debt
2.00%
Pre-Tax Cost of Debt2.00%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 87.91%($47.13B)
Debt: 12.09%($6483.43M)
Equity Component
12.02%
87.91% × 13.67%
Debt Component
0.24%
12.09% × 2.00%

Coinbase Global, Inc. Class A Common Stock (COIN) WACC in context

Coinbase Global, Inc. Class A Common Stock (COIN) currently screens with an estimated WACC of 12.26%. That blends a 13.67% cost of equity, a 2.00% pre-tax cost of debt, and a 87.91% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What COIN WACC implies

A 12.26% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates COIN

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.67 and equity accounts for 87.91% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.