Ripple's $50B valuation implies investors marked its 38-40 billion XRP holdings well below the $1.38 open market price, suggesting the token is not undervalued. Garlinghouse targets $1 billion in annual revenue by end of 2026, but that still puts Ripple at a steep 50x earnings multiple. Escrow rules cap Ripple at releasing just 200-300 million XRP monthly, making its full 38 billion token stash effectively impossible to liquidate at market.
The most widely read finance newsletter on Substack isn't published by a bank, it's Doomberg, where 383,000+ readers get the energy and macro analysis the mainstream press misses. 24/7 Wall St. readers save 17% on their first year here. Ripple was valued at $50 billion in March, when the company bought back $750 million of its own shares. That was 25% higher than the $40 billion valuation it raised at in November, and the business has kept growing since.
However, the XRP (CRYPTO:XRP) price has fallen from $1.38 in March to $1 today. So Ripple keeps getting more valuable while the token it built keeps looking cheaper, which is why so many holders think XRP is undervalued. But does Ripple's valuation actually prove it?
Ripple's valuation has climbed fast while the XRP price fell. The company was worth near $15 billion in March 2025 and around $28 billion by that June. By September it was offering to buy back shares at $40 billion, and in November it raised $500 million at that same $40 billion valuation from investors including Citadel Securities and Fortress Investment Group.
Then in March this year, Ripple began a $750 million buyback that valued it near $50 billion. That is the company buying its own shares back from investors and staff, and whatever price it agrees to pay becomes the valuation. The $50 billion was a 25% jump in four months, agreed during a downturn that had knocked more than 40% off Bitcoin and 30% to 40% off XRP.
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