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Hashed’s Simon Kim Says Ethereum Is 57% Undervalued
Yahoo Finance· 2025-11-27 00:18
Core Insights - The Ethereum Valuation Dashboard estimates Ethereum's fair value at $4,747.4, indicating a 56.9% undervaluation compared to its current trading price of $3,022.3 [1] - The dashboard employs eight distinct valuation models, combining traditional finance methods with crypto-specific metrics to assess Ethereum's intrinsic value [2][3] Valuation Models - Traditional finance methods used include Discounted Cash Flow (DCF), Price-to-Earnings (P/E) ratio set at 25x, and Revenue Yield analysis [2] - Crypto-specific metrics include Total Value Locked (TVL) Multiple, Staking Scarcity, Market Cap to TVL Fair Value, Metcalfe's Law, and Layer 2 ecosystem valuation [3] Valuation Results - Metcalfe's Law suggests the highest valuation of $9,583.6, indicating Ethereum is 217.1% undervalued, while the DCF model estimates $9,067.8, reflecting a 200% undervaluation [4] - The P/E Ratio model indicates Ethereum is 70.2% overvalued at $899.2, and Revenue Yield suggests a 52.4% overvaluation at $1,438.8 [4] Composite Fair Value Calculation - The composite fair value of $4,747.4 is derived by weighting each model based on reliability, with high-reliability models being nine times more influential [5] - The analysis yielded five buy signals, one hold, and two sell signals across the eight models, with high reliability models including MC/TVL Fair Value, Metcalfe's Law, DCF (Staking Yield), P/E Ratio, and Revenue Yield [5] Market Data Overview - Current market data shows Ethereum priced at $3,022.3, with a market cap of $365.4 billion and a 24-hour trading volume of $21 billion [7] - Ethereum's price is 38.8% below its all-time high of $4,946.1, with a market dominance of 16% and a year-over-year drop of 24.7% in the ETH/BTC ratio [7]