- In this series, we have been looking at the performance of SaaS (software as a service) stocks and their performance over time.
- The group stocks passing the Rule of 40, balancing sales growth and profitability, have been a very good bet over the last 15 years.
- In previous installments we looked at the Rule of 40 in detail, plus a common valuation method.
- In this installment, we look at three new characteristics of SaaS firms and their stocks.
- Stocks scoring high on these factors have historically outperformed the broader market, but more importantly, have outperformed the All R40 universe of stocks.
For further details see:
Rule Of 40 For SaaS Companies - Part IV - 3 Ways To Beat The Rule Of 40