Market Sizing Consistency
Definition
The requirement that the total addressable market, serviceable addressable market, and serviceable obtainable market figures presented in investor materials are internally consistent and connected to the financial model's revenue projections. The serviceable obtainable market must be calculable from the revenue model's assumptions about market share and growth rate. A market size figure that is not connected to the financial model cannot be used to validate the revenue projections.
Common Misapplication
The most common misapplication is stating a large total addressable market figure without demonstrating the pathway from total addressable market to the revenue figure in the financial model. An investor can assess whether the revenue projections are plausible only if the pathway from market size to revenue is explicit.
FFI Standard Reference
This term is defined and applied in Book 4, Section 4.1: The Valuation Methodology Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Market Sizing Consistency. https://ffistandard.org/glossary/market-sizing-consistency/. 2026.