$177.40 4.88%
FIL · 1d

Applying traditional valuation models to Filecoin

I am new to crypto and considering investing in Filecoin. I am a traditional "value" investor type and could never see value in crypto previously due to it's lack of revenue/earnings and any sort of backing value. However Filecoin has changed my mind because it has a simple tangible utility that is easy to understand (cloud storage). I was impressed to read that Filecoin / IPFS went from 1 exabyte in November to 2.5 exabytes by end of February. That is INSANE growth... I am wondering who/what is driving this mass adoption. OK so I did another analysis to apply traditional valuation to Filecoin. Amazon Web Services S3 charges $.02 per gigabyte per month for cloud storage costs. So based on this valuation... what is value of network of 2.5 exabytes? I calculate an "**annual utility"** generated by Filecoin network as $0.02 (gb/month) \* 1e+9 (gb in exabyte) \* 12 (months) \* 2.5 exabytes = **$600 million annual utility.** A $11 billion market cap doesn't seem that outlandish based on that utility especially when you consider the growth. If you consider that $600 million "earnings' then that's under a 20 P/E ratio and with that growth the forward P/E would be far less. Another comparison might be to compare Filecoin to company like Dropbox... both of them are at around $11 billion market cap. But with the push towards decentralization... obviously the growth is way in Filecoin's favor. Does my value calculation above make sense? Or am I way off base here.
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