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Onchain Economics

Price to Sales Ratio(P/S)

Valuation metric comparing market cap (or FDV) to annualized revenue.

In-Depth Explanation

P/S = Market Cap / Annual Revenue. Lower P/S suggests a token may be undervalued relative to its revenue. However, P/S doesn't account for growth, profitability, or token emissions. Compare P/S across similar protocols and adjust for whether using market cap vs FDV.

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