Hashed CEO Simon Seojoon Kim has developed a comprehensive valuation tool that calculates the fair value of Ethereum (ETH) using multiple indicators. According to data shared by Kim, there is a significant difference between the current market price and the model outputs.
According to the current data in the tool, Ethereum’s market price is at $3,135.6. In contrast, the “Composite Fair Value,” calculated by averaging all 12 different models, is $4,895.6. This suggests that Ethereum may be approximately 56.1% undervalued compared to its current price, indicating an overall “undervalued” outlook.
The valuation range between the models is quite wide. The lowest calculation comes from the P/S Ratio (25x) model, which is based on revenue multiplier and predicts Ethereum’s fair value at only $6.2, arguing that the current price is excessively high. In contrast, the most optimistic scenario is painted by the Ecosystem Construction (MV=PQ) model, which calculates Ethereum’s fair value at $10,693.8 based on the total transaction volume across layer-1 and layer-2.
Many of the prominent models in the valuation tool indicate that Ethereum is trading below its current price.
*This is not investment advice.
