PUMP may be undervalued in the short term, while long-term value retention remains uncertain

Odaily reports: Shaunda Devens stated that PumpFun's annualized revenue is approximately $677 million, with PUMP's price-to-sales ratio at about 2.8x, lower than comparable revenue-generating tokens; based on current revenue and price, 50% of protocol revenue is used for programmatic buybacks and burning of PUMP, equivalent to repurchasing about 17.6% of the circulating supply annually, while approximately 77% of tokens already allocated to the team and investors have not yet moved. PUMP's official documents explicitly state that the token does not represent equity in PumpFun, nor does it grant holders rights to income, profits, dividends, or cash flows; PumpFun's approximately $2 billion treasury is owned by Baton Corp, and the existing buyback arrangement will expire in April 2027. Under its base-case scenario, PUMP's valuation range is $0.0108 to $0.0205, approximately 2.3 to 4.4 times higher than the September 9 price; if business activity declines and valuations continue to contract, the price could fall by 59% to 76%.