Total Addressable Market (TAM)

Total addressable market is an estimate of the total revenue opportunity available to a company or product if it captured 100% of its potential market, used most often to argue how much room a growth company has left to expand. It is a ceiling, not a forecast of what the company will actually capture.

TAM figures are frequently inflated in company presentations by defining the market as broadly as possible, which is why experienced analysts treat a company's own TAM slide skeptically and prefer to build a bottoms-up estimate from actual customer counts and pricing.