A market analyst calculates an estimate of a potential valuation for Ripple in the event of an IPO, possibly exceeding $600 per share.
Renowned Wall Street veteran Linda P. Jones, with a 25-year career in the financial industry, has shared her expert insights on what a potential Ripple Public Offering (IPO) could look like following a decisive legal ruling in the ongoing lawsuit.
In a recent video, Jones embarked on a back-of-the-envelope calculation to estimate Ripple’s stock value. Based on current data from Linqto, Ripple’s shares are priced at $35, reflecting a valuation of $5.7 billion. Notably, Linqto allows investors to buy a company’s stock pre-IPO.
Will we see a record setting #iPO for #Ripple after the Judges decision?
Listen to 25yr Wall St veteran discuss what a @Ripple iPO could look like,a 20x Valuation=$600+ Ripple share price? #RETWEET #XRPArmy
Credit: @LindaPJones pic.twitter.com/Ph7vdoeR0e
— Digital PerspectivesPermaBull (@DigPerspectives) May 31, 2023
However, Jones highlighted that Linqto’s figure seems disproportionately low when considering Ripple’s historical performance and substantial XRP holdings.
Drawing attention to Ripple’s vast XRP reserves, Jones emphasized that the 42 billion XRP tokens held in escrow are currently valued at $21 billion, assuming a market rate of $0.50 per token. This valuation alone outstrips Ripple’s current market value by fourfold, indicating a significant undervaluation.
Comparing Ripple IPO to Coinbase
To substantiate her hypothesis, Jones drew a parallel to the successful IPO of Coinbase, America’s largest crypto exchange. Coinbase witnessed an exponential increase in value after going public, with a valuation surging from $86 billion to remarkable heights.
Jones speculated that if Ripple was valued similarly to Coinbase, at $86 billion, combined with its $21 billion XRP holdings, the total valuation could reach an astonishing $107 billion—almost 20 times the current market value.
Envisioning a scenario where XRP regains its former peak value of $3.59, Jones projected a staggering valuation of $150 billion for Ripple’s escrowed XRP holdings alone. Such a remarkable figure would necessitate a substantial increase in Ripple’s stock price to align with this valuation.
Jones pointed out that leading companies such as Nvidia, Apple, and Amazon have attained trillion and billion-dollar valuations. Given Ripple’s potential and alignment with world-class enterprises, Jones reasoned that a valuation of half a trillion dollars could be within reach.
The financial expert concluded that Ripple’s stock appears to be an enticing investment prospect, potentially offering a 20-fold increase.
“Where we are today, it is worth 20 times what’s on Linqto. So, it’s a great buy, a great investment. I think it can only be up from there,” she remarked.
Notably, Ripple’s CEO recently gave subtle hints of the company’s forthcoming IPO, as reported by The Crypto Basic. Speculations suggest that the IPO could come up after the firm secures victory from the court against the SEC.