The cryptocurrency-trading platform is expected to put up big numbers through 2027 at least

Analysts polled by FactSet expect Coinbase to increase its earnings per share at an annualized pace of 30.8% from 2025 through 2027.

As of Friday, shares of Coinbase Global Inc. had risen 43.3% in June. It might seem at first to be an expensive stock, but consensus estimates make the case that committed investors may be well rewarded several years from now.

One reason Coinbase has soared this month is that the stock was added to the S&P 500 in May. This means index funds such as the $630 billion SPDR S&P 500 Trust and the $1.4 trillion Vanguard S&P 500 ETF have been buying the shares.

The provider of services for people who invest and trade in bitcoin and other virtual currencies is expected by analysts polled by FactSet to earn $5.28 a share this year on revenue of $7.37 billion. Those figures are expected to rise to EPS of $7.80 on sales of $8.15 billion in 2026, and EPS of $9.04 on sales of $8.83 billion in 2027.

The most commonly cited stock-valuation metric is forward price-to-earnings ratio; this is a company’s share price divided by the consensus earnings-per-share estimate for the next 12 months. On this basis, Coinbase appears to be expensive: At Thursday’s close, its forward P/E ratio was 57.7, compared with a weighted forward P/E of 22 for the S&P 500.

We can also look at price-to-sales ratios on the same rolling 12-month bases. Coinbase’s forward P/S ratio was 11.7, compared with a weighted P/S ratio of 3 for the index.

Now let’s take a look at projected compound annual growth rates (CAGR) for Coinbase and the S&P 500. These are based on consensus estimates among analysts working for brokerage and research firms polled by FactSet, weighted for the index by market capitalization:

Coinbase is expected to increase earnings much more quickly than the S&P 500 as a group. And if the company reports results that come in ahead of expectations, analysts will raise their estimates for sales and/or earnings, which could support further price gains.

The crypto-trading portal has also been caught up in the recent stablecoin frenzy. Through Thursday, the stock had climbed 27% in the wake of last week’s launch of Coinbase Payments, which it described as “a stablecoin payments stack designed for commerce platforms” — setting a new record high in the process.

However, Coinbase shares sank 5.8% on Friday. Stablecoin play Circle Internet Group Inc. has also seen its stock pull back just three weeks after itsbuzzy initial public offering, and plunged 15.5%. Coinbase jointly launched the USDC stablecoin with Circle in 2018; Circle took full control over USDC issuance and governance in 2023, although Coinbase remains aninvestorin the company.

This week, analyst firm Oppenheimer raised its price target for Coinbase to $395 from $293.

“After the IPO of CRCL and the creation of many crypto treasury funds (e.g. BTC, ETH, TRON), there is a focus on consumer payments, treasury funds and [decentralized finance],” wrote Oppenheimer analyst Owen Lau. “Sentiment has continued to improve, and we expect more innovation, more partnership between [traditional finance] and crypto-native ventures, and more capital going into this space.”

Coinbase, Lau added, is well positioned to benefit from further blockchain adoption.

Coinbase, like Robinhood Markets Inc. and Strategy Inc., has been cited as abeneficiaryof a crypto-friendly Trump administration. Bitcoin, however,fell during the President Trump’s first 100 days in officethis year.