The value theory method of calculating the total addressable market is estimated on the value provided by the product or service to the customers. This method relies much more on supposition and guesswork but can be useful at times. This method calculates the value of the product or service provided to the users and specifically capturing that value through the pricing of the product or service. This method helps best in getting a sense of the total addressable market when you are about to launch a novel product to the market that has the potential to create its own category. This method of estimating the total addressable market comes in handy when you launch new upgrades or features of an existing product or service.