The SaaS “Rule of 40”: Valuation Indicator or Online Echo Chamber?

Learn more: breakingintowallstreet.com/ve...
This tutorial will explain the "Rule of 40" for SaaS companies, including its valuation and operational implications and its limitations.
Files & Resources:
breakingintowallstreet.com/kb...
Table of Contents:
0:00 Introduction
1:14 The Rule of 40 in a Nutshell
3:58 Part 1: How to Calculate the Rule of 40
7:27 Part 2: Valuation Implications
9:09 Part 3: The Rule of 40 as an Operational Metric
10:25 Part 4: The Rule of X and Other Variations/Improvements
11:42 Recap and Summary

[@financialmodeling]

Files & Resources:
breakingintowallstreet.com/kb/venture-capital/rule-of-40/
Table of Contents:
0:00 Introduction
1:14 The Rule of 40 in a Nutshell
3:58 Part 1: How to Calculate the Rule of 40
7:27 Part 2: Valuation Implications
9:09 Part 3: The Rule of 40 as an Operational Metric
10:25 Part 4: The Rule of X and Other Variations/Improvements
11:42 Recap and Summary

[@Latin_American_Economic]

The revenue growth rate was in line with what I seen in SaaS firms pre-revenue to pre-IPO covering the venture debt space. Pretty spot on about how SaaS metrics are used to analysis firms. Generally speaking, we use many of those things mentioned to figure out whether something is right, if not, we use it to figure where to start looking at.

[@financialmodeling]

Thanks for watching!