Different factors are used to determine how much value a business has
1. Market Size: The Total Addressable Market, or TAM, is probably one of the most significant measures of growth. An expansive marketplace is usually considered very attractive as it tends to depict the scope for creating massive revenues. As such, several more investors are going to be attracted to companies that operate in booming markets.
2. Firm Potential: An unusual business model, innovative products, or disruptive technology can enhance the perceived value. Companies are in most cases valued higher if they possessed the sort of competitive advantage in order to capture market share.