There are two answers to this question: the fundamental value and what someone will actually pay for it.
“Red chips” – Chinese companies which few international investors will have heard of until they adopted the Hong Kong public markets for money – hit price to earnings multiples of 80 or 90 times before the Asian financial crisis hit in mid-1997.
Queues for listing prospectuses proved to be a much better measure of where the price would end on trading debut than actually reading the documents.
The gap between what people will pay for a company and what a company is fundamentally worth seems to be growing wider and wider.
China is not the only one boasting about tech groups with inflated asset values. Online streaming outfit iQiyi is expected to raise aprroximately USD $8 billion to USD $10 billion when it lists. If it were put on the same multiple as Netflix, which even streams the same shows, it would then double that.