This is a competition to research on a company and it’s stock and produce a report to showcase our results. 📈
I was mainly in charge of research and valuation, employing methods such as DCF, PE valuation, revenue forecasting etc.🚀✨
The Project
In this project, we did our analysis on Coinbase, a company that is trying to create a fairer, more accessible and more transparent financial system through Crypto.
We first did some general business due diligence followed by analyzing the company’s business model and some of their competitors. Through this, some insights about Coinbas, such as how they may function more like a neo-bank instead of a crypto-exchange.
Secondly, we took a look at the macro environment and the space which Coinbase operates in, and concluded that periods of high volatility may be seen, due to the nascent stage of Crypto in 2021. Competition was building and regulatory challenges was tough. Although this was the case, some countries also started accepting crypto and many technologies based on crypto was being developed at a fast pace.
A revenue model was made, encompassing their (previously) 5 revenue generating segments, accounting for the period of strong retail interest in bitcoin back in late 20’ and early 21’. We then compared different methods of valuation and used PE due to the company’s profile as a growth stock.
Next, we looked at some of the risks that the company may face, including asset, market and legal. Despite the company’s efforts at trying to mitigate risks by diversifying revenue streams, the company was still very risky. Some sensitivity analysis was done on the financial models. Some catalysts were also explored.
Lastly, we concluded the project with some research on the company’s ESG profile.
Conclusion
Although no awards were won, I gained a lot of valuable experience from this competition! They include putting my learning into practical applications, collaborating with international students and resolving a team disputes!
Thanks for reading!
After this project, I have done many projects such as startup VC pitch! Click here to find out more!