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%

75 companies

Medium

56%

252 companies

Healthy

27%

123 companies

Total: 450

Symbol
Score
Revenue Growth TTM
EBITDA Margins
5370
5637.80%-267.52%
4703
4888.40%-185.00%
3102
3101.70%0.00%
830
829.90%0.00%
758
758.10%0.00%
596
595.60%0.00%
552
578.30%-25.80%
470
469.80%0.00%
435
639.90%-205.17%
418
440.90%-22.91%
411
340.90%70.04%
389
406.60%-17.51%
356
341.40%15.08%
305
305.20%0.00%
214
214.30%0.00%
169
142.70%26.63%
162
112.50%49.92%
157
237.60%-80.37%
136
92.80%43.25%
132
52.80%79.29%
130
129.80%0.00%
125
125.20%0.00%
113
156.10%-42.77%
111
105.00%6.15%
100
100.00%0.00%

Rows:

125 of 450

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