P/S Ratio
P/S Ratio = Fully Diluted MC / Revenue = Token Market Cap / Agreed Annualized Revenue
In traditional finance, P/S RATIO is a stock valuation index. It is calculated by dividing a company's market capitalization by its previous year's revenue. The lower the P/S ratio, the higher the investment value of the company's stock. Applying the same concept to currency, the P/S ratio can be used to reflect the reasonableness of the ratio of the agreed market capitalization of a defi project to its agreed annualized revenue.
As there are so many decentralized application DApps, TraderJoe, LOOKS, SpookySwap are relatively more valuable investments. But that doesn't mean you have to decide right away.。
Is Polkadot really more overvalued than Ether?
In fact, withTaffy fees have always been expensive.In addition, the high revenues of the projects in question have in effect brought the market capitalization closer to the revenues, and hence the price-to-sales ratios are relatively low.
Contrary to Polkadot The market capitalization is not only lower than EtherIn addition, the project allows higher-level applications to realizeZero Handling FeeThis will result in a significant reduction in project revenue, which in turn will result in the market capitalization being farther away from the revenue, and will result in a significant reduction in project revenue.The market capitalization is tens of thousands of times higher than the market capitalization.。
Properly utilizing the price-to-sales ratio together with other indicators can more accurately analyze whether a project is undervalued or overvalued, which can help to formulate a strategy to invest in the project's tokens. However, the most important thing is to understand and think logically, so if you want to make a lot of money, you need to practice more.
Personally, I think it's best to use P/S Ratio to find the right competitors. Polkadot and Ethereum are quite different from each other in terms of capability, background, popularity of supporters, and amount of capital, so P/S Ratio may not reflect the realistic information when comparing the two blockchains.