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Rule of 40
The Rule of 40 says a healthy SaaS company should have revenue growth + profit margin >= 40%.
Last year revenue ($M)
This year revenue ($M)
EBITDA margin (%, can be negative)
Rule of 40 Score
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Growth:
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Margin:
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Result:
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Related
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Intrinsic Value
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Burn Rate
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Break-even
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Compound Growth