Ripple's $50 Billion Valuation Masks XRP Price Discount
Ripple's $50 billion valuation has raised questions about whether its native token XRP is undervalued, but an examination of the company's financials suggests otherwise.
When Ripple was valued at $40 billion in November and again at $50 billion in March after buying back $750 million of its own shares, the market price of XRP had fallen from $1.38 to $1. This led some to speculate that XRP is undervalued, but a closer look reveals that investors actually marked Ripple's 38-40 billion XRP holdings well below their open market price.
Ripple CEO Brad Garlinghouse has set a target of $1 billion in annual revenue by the end of 2026, which would put the company at a steep 50x earnings multiple. The business has been growing steadily since its valuation climbed from near $15 billion in March 2025 to around $28 billion by June and then to $40 billion in November.
The key factor in Ripple's valuation is its XRP holdings, which are largely locked away in escrow accounts to prevent market flooding. Only 200-300 million tokens can be released each month, worth around $200-$300 million at today's prices. This means that even if the company were to release all of its XRP holdings, it would still be worth less than the $50 billion valuation.