Forward Price to Bitcoin Yield Derived

Forward Price to Bitcoin Yield Derived is a valuation tool that compares a company’s current market capitalization to its forecasted future bitcoin yield, scaled by the current bitcoin price. It essentially tells you how much investors are paying today for each projected future bitcoin earned by the company—just as the P/E ratio tells you how much investors pay per dollar of future earnings.

Formula: Forward P/BYD = Market Cap ÷ (Projected Forward BTC Yield × BTC Price) Market Cap: The total market value of all the company’s outstanding shares. Projected Forward BTC Yield: The expected amount of new BTC the company expects to generate (via mining, lending, or other operations) over the next period (typically the coming year). BTC Price: The market price of one bitcoin.

Example Calculation

Suppose a company has: Market Cap: $1 billion Projected Forward BTC Yield: 1,000 BTC next year BTC Price: $60,000

Then: Forward P/BYD = $1,000,000,000 ÷ (1,000 × $60,000) = $1,000,000,000 ÷ $60,000,000 = 16.67 This means investors are currently paying $16.67 for every $1 of projected future bitcoin to be generated by the company.

Why Is Forward P/BYD Important?

Forward P/BYD functions much like the P/E ratio, helping you determine whether a company is "expensive" or "cheap" relative to its future bitcoin-generating performance.

Lower Forward P/BYD ratios can indicate undervalued companies that may yield more future BTC per invested dollar, while higher ratios can point to “hyped” or more speculative businesses.

It allows you to compare companies of all sizes and capital structures—even those with wildly different levels of existing bitcoin holdings—on their ability to create new BTC yield in the future.