The Analyst's Path

Glossary

Total addressable market

CN2.02 · M4.01

Also called TAM, addressable market.

The total revenue available if a product served every possible customer.

The figure is almost always presented at its most generous, and the useful discipline is to build it from the bottom rather than accept a top-down number from a research report. Households multiplied by the share that could plausibly buy multiplied by realistic spend gives a number you can defend and argue about.

A ₹1,80,000 crore category of which 35% is genuinely addressable gives a ₹63,000 crore market, and the difference between those two numbers is usually where an investment case is won or lost.

Ask who is excluded and why.