Coinbase Global's Share Price Surges on Tokenization Hub Plans

Coinbase Global's share price has rebounded sharply in recent times, with a 1-day return of 7.58% and a 7-day return of 16.08%. The year-to-date share price return is down 27.13%, while the 1-year total shareholder return has declined 46.12%. However, the 3-year total shareholder return remains up 132.09%. This rebound comes as Coinbase Global receives a Financial Services Permission from Abu Dhabi's FSRA to build an international tokenization hub in the Abu Dhabi Global Market.

The permission targets fully backed tokenized securities and has sparked fresh optimism around US rules. Additionally, recent regulatory progress around the CLARITY Act and new product launches have contributed to the rebound. The business looks ambitious, but the question remains whether its valuation will follow suit.

A user narrative suggests Coinbase Global is undervalued at $172.35, with a fair value of $247.39. However, our DCF model presents a different picture, putting fair value closer to $14.23, which would make the current share price look heavily overvalued instead.