Total Addressable Market (TAM)

The portion of the total addressable market that a company can realistically serve given its current product, business model, and geographic reach. SAM is a more practical measure of near-term opportunity than TAM.

Modifications applied to valuation multiples derived from comparable public companies or precedent transactions to account for differences between the reference companies and the subject being valued. Common adjustments address differences in size, growth rate, profitability, geographic mix, capital structure, and the presence or absence of a control premium.

A marketplace where existing shareholders in private companies — typically employees, early investors, or founders — can sell their ownership stakes to new buyers before an IPO or trade sale. Secondary markets for private shares have grown significantly, with platforms such as Forge Global and Nasdaq Private Market facilitating transactions that provide liquidity and price discovery for otherwise illiquid private company equity.

The price at which an asset would change hands between a willing buyer and a willing seller, neither being under compulsion to transact, and both having reasonable knowledge of the relevant facts. Fair market value is the standard used in most asset valuation contexts.

A comprehensive measure of investment performance that combines share price appreciation and dividends over a given period. TSR is a key metric for assessing whether management's investment in both tangible and intangible assets is translating into value creation for shareholders.

A measure of productivity that captures the effects of technology, innovation, management quality, and other intangible factors that increase output beyond what can be explained by the quantity of labour and capital inputs used. TFP is calculated as GVA divided by a weighted combination of labour and capital inputs.

A private equity and venture capital performance metric combining both realised returns (distributions) and unrealised value (remaining portfolio value) relative to total capital contributed. TVPI equals DPI plus RVPI and provides the most complete picture of a fund's overall performance.

A measure of market concentration calculated by summing the squares of each firm's market share within an industry. HHI is used by regulators and investors to assess competitive dynamics and is relevant to intangible asset valuation because highly concentrated markets often support stronger pricing power and brand premiums.

The AI Productivity Paradox: Why Trillions in AI Spending Aren't Moving the Needle

Global AI investment has surpassed $500 billion annually, yet total factor productivity growth remains stubbornly flat. This is Solow's paradox reborn: you can see AI everywhere except in the productivity statistics. History tells us why — and what needs to change.