Total Addressable Market

Explanation

TAM is a key input in growth stock valuation because it defines the upper bound of a company's revenue potential. TAM analysis progresses through three levels: Total Addressable Market (entire market), Serviceable Addressable Market (SAM — the portion reachable by the company's business model), and Serviceable Obtainable Market (SOM — the realistic near-term share). A company with $1B revenue in a $100B TAM has 99% of its opportunity ahead. TAM expansion — entering new markets or use cases — is a key growth driver that the Stoquity AI engine monitors.

How Stoquity Uses This

Stoquity incorporates total addressable market analysis across its portfolio management platform, providing real-time monitoring and AI-powered insights for every portfolio.