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The drop also marks the first time ever that the price of an Ether has fallen below its valuation over one year: one Ether is worth $266 right now at the time of writing, versus $304 on August 14 2017.
Given Square's growth rates at that time, doubling from March to April, and again from April to June, it is possible to predict that in January, the company was processing 50percentt less than it was in March, putting its processing volume run rate on par or below its valuation.
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The firm's long-term average is 1.60, and it currently has an EV/S ratio of 1.37, putting it 15% below its normal valuation.
Square's pricing — below its previous valuation — is one of many instances of valuations being written down among late-stage startups.
That values Babytree at HK$11.5 billion, or $1.47 billion, well below its May valuation of $2.19 billion after it inked a strategic investment from Alibaba that saw the partners collaborating on multiple fronts, including e-commerce, advertising and paid content.
Dropbox and Snapchat aren't the only ones facing challenges when it comes to their valuations: Square valued itself at around $4.16 billion in its IPO pricing, once again below its $6 billion valuation from its previous financing rounds.
We think that it is possible that Ocado could be acquired, but the price would need to be well below its current valuation.
Investors often prefer to look at a price-to-book ratio to value financial firms; even on that measure, Goldman is far below its peak valuation.
Lloyds Banking Group has underlined its determination to entice investors to back the stock market flotation of TSB by pricing shares in the new bank below its own valuation of the 631 branch network.
Square is planning to IPO at 7x its funding amount, and below its previous valuation.
Fab is now almost certainly below its $1bn valuation of last year.
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