DeFi «P/E Ratios» compared to Tech Stocks

Since the supply-side revenues are given to the lenders, liquidity providers etc. they are not relevant earnings wise.
Under the admittedly idealistic assumption that all protocol revenue remains within the protocol (no pay-outs to non-token holders) and is a 100% reflected as profit in the protocol token, the following P/E ratios would result:

  • Maker = 32
  • Compound = 46
  • Bancor= 62
  • Sushiswap = 388
  • Aave = 545
  • Uniswap = infinite
  • Balancer = infinite

As with most crypto and tech ventures a lot of growth priced in, but compared to

  • Microsoft = 38
  • Apple = 36
  • Amazon = 81
  • Tesla = 1’115
  • Airbnb =-11
  • Spotify =-82

actually are rather “modest” in places.

Nevertheless the Uniswap token seems way to expensive also with a planned future 0.05% protocol fee which would result in a P/E of 3’000 (also compare to Sushiswap with a 0.05% protocol fee already in place).

Link to revenue figures

Link to marketcap figures