What is Valuation Using The Market Penetration Model?

Legal Definition
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.
-- Wikipedia