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

18%

92 companies

Medium

55%

287 companies

Healthy

27%

139 companies

Total: 518

Symbol
Score
Revenue Growth TTM
EBITDA Margins
119773
119772.90%0.00%
3478
3590.30%-112.43%
3102
3101.70%0.00%
2137
2136.90%0.00%
1864
1970.40%-106.01%
1608
1607.50%0.00%
930
929.80%0.00%
830
829.90%0.00%
596
595.60%0.00%
498
607.40%-109.63%
473
454.00%19.04%
470
469.80%0.00%
449
523.20%-74.50%
418
440.90%-22.91%
418
440.90%-22.91%
412
412.30%0.00%
411
340.90%70.04%
356
341.40%15.08%
308
322.40%-14.23%
284
283.80%0.00%
281
280.80%0.00%
265
269.70%-4.39%
210
350.30%-140.21%
173
126.30%46.36%
162
112.50%49.92%

Rows:

1–25 of 518

1
2
3

...

21