Assessing the True Value of Ethereum: Is It Really Undervalued?
An analysis by CEO Simon Kim reveals Ethereum's potential fair value indicating it is undervalued compared to its current market price.
Simon Kim, the CEO of Hashed, has developed a new dashboard to evaluate the intrinsic value of Ethereum by utilizing 12 distinct valuation methods. These methods range from conventional finance frameworks such as Discounted Cash Flow (DCF) and Price-to-Sales (P/S) ratio, to metrics specific to the crypto landscape, including Total Value Locked (TVL) Multiple and Validator Economics.
Potentially Undervalued?
Based on Kim’s analysis, the fair value for ETH is estimated to be $4,869. Given its current market price of just below $3,000, ETH appears to be undervalued by more than 62%.
Ethereum Valuation 29.11.2025. Source: ETHVAL
A more in-depth examination of the specific figures reveals that the Metcalfe’s Law estimates ETH’s value at $9,869. This law states that a network’s value is proportional to the square of its number of users.
Other metrics like DCF yield a figure of $8,995, and Validator Economics gives a value of $6,984, suggesting that the future value of Ethereum is expected to surpass $5,000 based on various factors.
Claims of Overvaluation?
Only two of the twelve methodologies indicate that ETH may be overvalued at its current market price. One, the P/S ratio, suggests it should be valued below $930 by comparing market cap to annual transaction fee revenue. The other, Revenue Yield, hints at a fair value of roughly $1,433 when viewed as a yield-bearing bond.
