💫Trading Multiple and Price Projections
This section examines trading multiples, a key valuation metric, and its relationship with potential Rebels Revolt ecosystem revenue and growth prospects.
Understanding the Trading Multiple
Definition: A trading multiple is a ratio used to evaluate a token's price based on financial performance metrics. It is similar to P/E ratios for equities.
Calculation:
Trading Multiple = Token Price / Financial Metric
EXAMPLES:
Assumptions:
Usage Data
Value
Membership Tokens
50%
Lost tokens/year
0.50%
HODL tokens
10%
Means of Payment
10%
Table#5
Data
Value
Token Velocity
4
Trading Multiple
3
Table#6
The table below illustrates the fair-trading price for all sales stages with the above figures.
Token Fair Price Projections
Token Trade Price Projections
Comparison charts illustrate the relationship between token velocity, trading multiples, and token fair and trading prices over a given period.
It's a common phenomenon in cryptocurrency for tokens to exhibit substantial [ridiculous] trading multiples.
Graph displaying the estimated market capitalization and fully diluted value projections for $RBLS token.
Let’s assume we use twice the average velocity of M2 money stock [1.4] of 2.8 and a trading multiple of 25. We shall keep other assumptions the same. We will arrive at the following;
Data
Value
Token Velocity
2.8
Trading Multiple
25
Table#7
The table below illustrates the fair-trading price for all sales stages, using figures from tables 5 and 7.
Token Fair Price Projections
Token Trade Price Projections
Comparison chart illustrating the relationship between token velocity, trading multiples, and token price over a given period.
Market Cap & Fully Diluted Value (FDV) Projections
Graph displaying the estimated market capitalization and fully diluted value projections for $RBLS token.
Note: Token fair and trading price table for all sales stages with the above figures can be viewed in Appendix D & Appendix E
Interpretation:
High Multiple: This indicates that the market values the token highly compared to the metric, reflecting bullish sentiment or strong financials.
Low Multiple: Suggests the market values the token lower than the metric, indicating bearish sentiment or potential undervaluation.
Application:
Comparison with Industry Standards: Benchmarking against similar tokens offers insights into relative valuation.
Buying Decisions: Buyers utilize multiples for informed decisions, evaluating pricing relative to financials.
Monitoring Trends: Tracking multiple changes helps identify shifts in market sentiment and investment appeal.
Relationship to Revenue Projections
1. Fueling Growth: Aligning Revenue Streams with Projections:
Revenue Alignment: Rebels Revolt revenue projections involve diversified streams for sustainable growth. However, the ecosystem is designed to support future launches, so their revenues are yet to be incorporated.
Ecosystem Sustainability: Platform fees help maintain the token-gated ecosystem by addressing fraud, chargebacks, and other issues. This allows a gradual transition to minimal intermediary fees for token holders.
Financial Sustainability: In-ecosystem product sales provide a promising avenue for diversifying revenue while fostering economic sustainability.
Market Confidence: The market's confidence in growth potential and revenue projections significantly sways the trading multiple. A positive correlation suggests promising prospects.
Integration with Rebels Revolt Ecosystem
Application: Calculating Rebels Revolt's trading multiple involves evaluating token price relative to revenue generation, aligning with revenue and engagement strategies.
Enhancement Opportunities: Optimizing the trading multiple includes diversifying revenue, expanding the user base, enhancing engagement, maintaining transparency, and fostering strategic partnerships.
With practical strategies, Rebels Revolt can boost its trading multiple, align with revenue projections, and build investor confidence to support a sustainable ecosystem.
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