Most buyers for small/medium size businesses are purchasing an income stream which will provide a living for themselves and their family. What your business is worth depends upon a number of factors:
What is the current value of the company assets?
What is the value of the seller discretionary earnings?
How secure is the goodwill of the business?
Will the employees stay on with a new owner?
How long is the current lease on the location and is there a demolition clause in the lease?
Would the current owner be considered an artisan?
Can the business operate without the current owner?
Evaluating a business is multi-faceted, and no set formula works for all. Ultimately, a business is worth what the market will pay.