$PUMP The current market value is about $2.0 billion. Based on the most recent 30 days of revenue, the annualized revenue is already close to $450 million, which corresponds to less than 5x PS—and revenue is still growing.
More importantly, Pumpfun will use half of its revenue to directly buy back and burn PUMP. At the current revenue pace, in one year it can generate about $220 million in buyback demand, which is roughly 10% of the current market value.
If revenue continues to grow, and the market is willing to value it at 8–10x PS, then a $10 billion market cap doesn’t seem particularly outrageous. There could still be about 5x upside. In the short term, a pullback of PUMP to around 0.0035 in the lower, high-density order area would be a good entry point.
More importantly, Pumpfun will use half of its revenue to directly buy back and burn PUMP. At the current revenue pace, in one year it can generate about $220 million in buyback demand, which is roughly 10% of the current market value.
If revenue continues to grow, and the market is willing to value it at 8–10x PS, then a $10 billion market cap doesn’t seem particularly outrageous. There could still be about 5x upside. In the short term, a pullback of PUMP to around 0.0035 in the lower, high-density order area would be a good entry point.
