T.A.M Stands for?
Total Addressable Market Investment managers love investing in companies with a very large T.A.M., in fact many venture capital investors won't invest in a start-up unless the T.A.M. is over $20 billion as more than 50% of companies fail within a few years of being founded. As a result, we always want the ones that do succeed to have an opportunity to be a billion dollar company (in terms of annual revenue). If a company gets 5% marketshare of a $20bn market, then this equals $1bn in revenue. If you can't find the T.A.M., then add up the annual revenue for the top 25 companies in a given sector for an estimate.