Valuation using the Market Penetration Model (original) (raw)

Valuation using the Market Penetration Model (MPM) or the growth potential of a company is a method of estimating the value of a company by calculating the depth of its market penetration as evidenced by its customer base and industry niche. The process consists of: * profiling a company's type of customer and analysing which complementary companies share these customers. * valuing the barriers to entry into the industry niche that the company operates in.