Veteran Wall Street analyst Linda Jones discusses Ripple’s potential to establish a groundbreaking IPO valuation, emphasizing pre-IPO share value, in an interview with Digital Perspectives.
The potential for a 2000% increasement exists in pre-IPO shares.
Jones started her analysis by mentioning the current valuation of Ripple’s pre-IPO shares on Linqto, indicating that at $35 per share (just under $34 on the platform), the valuation stands at $5.7 billion. She underscored that this valuation is significantly less than the company’s previous buyback valuation of $15 billion.
Jones’ analysis revolves around the significant holdings of Ripple in XRP. “Ripple holds 42 billion XRP in escrow,” Jones emphasized, noting the current price of XRP at $0.50.
Jones highlighted a significant discrepancy between the worth of XRP, estimated at around $21 billion, and Ripple’s current valuation, which is four times lower. This observation suggests a potential undervaluation. Drawing comparisons to Coinbase’s IPO success, where it attained an $86 billion valuation and saw substantial price increases post-IPO, Jones speculated that Ripple could achieve similar outcomes.
Jones suggested that by factoring in Ripple’s potential valuation alongside its XRP holdings, the company could be worth roughly $107 billion, a significant difference from its current valuation on Linqto. This estimation implies that the value could be approximately 20 times (or 2,000%) higher than the current selling price of pre-IPO shares on Linqto.
The Reasons Ripple Might Break Records
Jones’ analysis heavily considers the resolution of Ripple’s legal dispute with the SEC and its potential influence on XRP’s price. She envisioned a scenario where XRP reaches its previous all-time high (ATH) of $3.59, valuing Ripple’s escrowed XRP at a remarkable $150 billion. Highlighting this substantial valuation gap, she argued that it would be illogical for XRP to be valued at $150 billion while Ripple’s stock remains undervalued.
Jones compared Ripple to tech giants like Nvidia, Apple, and Amazon, suggesting that Ripple could rival them in terms of valuation due to its assets and market influence. Despite acknowledging Ripple’s shorter history, she emphasized its potential to join the ranks of world-class companies. Jones concluded her analysis optimistically, though cautiously, suggesting that Ripple could set a new record for IPO valuation. She estimated the company’s potential stock value at around $350 billion or even half a trillion dollars, factoring in its XRP holdings and market position.
