Essam Ali

Founder of BusinessForecast.com

Understanding TAM, SAM, and SOM: Breaking Down Market Potential for Your Business

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When evaluating market potential, businesses often rely on three key metrics: Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM). These metrics help businesses understand their market size, allocate resources effectively, and set realistic forecast targets—especially critical for start-ups seeking to secure investor confidence. Although TAM, SAM, and SOM are sometimes … Understanding TAM, SAM, and SOM: Breaking Down Market Potential for Your Business

Inflation and its Impact on Valuation

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Inflation is an important factor for any business to understand. Inflation, which is the general increase in prices over time, affects purchasing power and can significantly impact a business’s financial health and valuation. The main problem with fiat money is that it can be printed anytime as it is not backed by anything. A dollar … Inflation and its Impact on Valuation

Understanding the Cost of Capital (WACC) and its Influence on Valuation

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Introduction The cost of capital represents the price a business pays for using financial resources, whether from debt, equity, or a combination of both. It plays a significant role in valuation, which is the process of determining the economic value of a company. A clear grasp of these concepts can help businesses secure the right … Understanding the Cost of Capital (WACC) and its Influence on Valuation