Simon Seojoon Kim, CEO of South Korea-based crypto investment company Hashed, has shared the latest data from his valuation tool, which measures Ethereum’s fair value using multiple indicators.
The tool comprises a combination of 12 separate models that calculate Ethereum’s intrinsic value through different methodologies.
Current Valuation vs. Fair Value
According to ETHval data, Ethereum’s current price stands at $3,330.6. In contrast, the composite fair value, derived from all 12 models, is calculated at $6,002.1. This suggests that, based on the model’s assessment, Ethereum is currently trading at approximately 80% below its calculated fair value.
Individual Model Valuations
Several models within the tool indicate that Ethereum is significantly undervalued. For instance, the Metcalfe’s Law model calculates Ethereum’s fair value at $10,820, the staking DCF model at $9,991, and the Ecosystem Settlement (MV=PQ) model at $18,994. Conversely, other models, such as the P/S Ratio (25x) and Fee Yield, suggest that the current price might remain high based on certain short-term income metrics.
When all these diverse approaches are averaged, the median value is $4,744.6, while the compound fair value is $6,002.1.
However, it is noteworthy that some of the models propose significantly lower fair values for ETH, citing figures such as $1,485, $21.2, and $12.9.
*This is not investment advice.