Cryptocurrency Valuation Multiples: Price-to-Sales, Network Fee Revenue, and Active User Ratios for Fundamental Investors
Introduction: Bringing Traditional Multiples to Digital Assets
For decades, equity analysts have relied on valuation multiples such as price-to-sales (P/S) and price-to-earnings (P/E) to gauge whether a stock looks cheap or expensive relative to peers. As cryptocurrencies mature from speculative curiosities into investable asset classes, fundamental investors are