Does a "billion dollar company" refer to net income or asset value?

Question

When a company is called a "billion dollar company" or a "multi-million dollar company" is that referring to the total asset value of the company or the net income for the year?r

Answer 1

assets minus liabilities

Answer 2

market value. is someone is willing to pay 1 trillion, it's worth 1 trillion. if the highest bidder is 1 dollar, it's worth 1 dollar. people value companies differently and it's often more complicated than just assets and earnings. a sloppy method is add the assets and 20x earning.

Answer 3

I think its based on the value of the stocks