It tells about the TAM SAM SOM. Why does it matter for your business and how can you calculate TAM SAM SOM.

1. TAM SAM SOM
DEFINITION, WHY DOES IT MATTER AND
CALCULATION

2. TAM SAM SOM
 Subsets of market
 TAMSAMSOM inter relates

3. TAM
 Total Available Market
 Total market demand
 People who can buy your product

4. SAM
 Serviceable Available Market
 Segment of Tam
 Targeted by products
 How much you reach potentially

5. SOM
 Serviceable Obtainable Charges
 Portion of SAM you can capture
 Percentage of market you will reach realistically

6. TAM SAM SOM

7. EXAMPLE OF TAM SAM SOM

8. WHY DOES TAMSAMSOM MATTERS?
 SAM SOM helps in de-risking
 TAM helps in assessing upside potential
 SOM= short term target= Important
 SOM achieved= greater penetration of SAM
 SAM SOM achieved= increase penetration within TAM

9. HOW CAN YOU CALCULATE TAMSAMSOM
 Let us have an example
 You have an investor whose target return is 10x. Furthermore you are looking
for $250k investment in exchange for 20% startup. On the basis of your
market research and business plan we can assess that as:
 TAM= $5bn
 SAM= $100m
 SOM= $10m within 2 years
 EBDITA margin= 30%
 Valuation at exit= 8x EBITDA on the basis of value listed companies within
sector

10. Continued
 Deliver $10m in revenues the EBITDA is $10m revenues x 30% margin= $3.oom
 the company is worth 8 x $3.00m EBITDA= $24m
 investor return is $10m and 20% ownership/$250k investment= 8.0x
 Achieve SOM
 Investor has 12% of market share
 represents 5% of TAM of $5bn.

11. CONCLUSION
 All about TAMSAMSOM
 Calculation for your business market
 Help you in every way