Price to Sales (P/S)

• From Bankless (2020 Q3 report):

"While many of these protocols  are generating revenues, not all of it (if any) accrues to the protocol’s native token - an important distinction to  recognize when valuing these assets. Price to earnings (P/E) is the profit that is accrued to the protocol’s token whereas Price to Sales (P/S) is the  revenue generated from usage of the protocol at large."

• From Token Terminal (11-12-2020):

"The price to sales ratio compares a protocol’s market cap to its revenues. A low ratio could imply that the protocol is undervalued and vice versa. The price to sales ratio is an ideal valuation method especially for early-stage protocols, which often have little or no net income (because the revenue is reinvested into growth, often by subsidizing the use of the protocol’s service)."