Rule of 40

Rule of 40

The Rule of 40 is a principle that states a software company's combined Revenue Growth Rate and EBITDA Margin should equal or exceed 40% to be considered exceptional.

Set Calculation Range for the Rule of 40 Score

A Score of 40 and over is best.

Unhealthy

17%

78 companies

Medium

56%

255 companies

Healthy

27%

125 companies

Total: 458

Symbol
Score
Revenue Growth TTM
EBITDA Margins
5370
5637.80%-267.52%
3478
3590.30%-112.43%
3102
3101.70%0.00%
1864
1970.40%-106.01%
830
829.90%0.00%
596
595.60%0.00%
470
469.80%0.00%
418
440.90%-22.91%
411
340.90%70.04%
389
406.60%-17.51%
356
341.40%15.08%
344
344.00%0.00%
335
334.50%0.00%
169
142.70%26.63%
162
112.50%49.92%
142
141.60%0.00%
136
92.80%43.25%
132
52.80%79.29%
130
129.80%0.00%
126
188.00%-61.57%
126
234.40%-108.49%
114
140.70%-27.05%
111
138.00%-26.78%
111
105.00%6.15%
101
80.80%20.58%

Rows:

1–25 of 458

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