DCBO - Rule Of 40 For SaaS Companies - 2021 Performance YTD - A Difficult Year So Far But High Scoring Stocks Are Poised For A Rebound
- In 2020 and early 2021, I published a series of articles on software as a service (SaaS) firms and their stocks, and especially those that pass the Rule of 40.
- The Rule of 40 balances sales growth and profitability in hyper-growth SaaS companies, and we have found, as a group, these stocks have outperformed the broad market and software indices.
- In this series, I developed and shared two scoring systems that can be used to assess software stocks, both the “Rule of 40 Scorecard” and the “SaaS Scorecard”.
- In this piece, we review the performance of our All Software Stocks universe, the “R40 Scorecard” and “SaaS Scorecard” stocks for the first half of 2021.
- I also share the Rule of 40 Scorecard for those stocks passing the Rule of 40 today.
For further details see:
Rule Of 40 For SaaS Companies - 2021 Performance YTD - A Difficult Year So Far, But High Scoring Stocks Are Poised For A Rebound