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Ruleof40

Rule of 40The rule of 40 is a popular metric for measuring the quality of SaaS companies. It measures growth and profitability. Companies are considered good if this sum is above 40. It is the sum of the year over year sales growth and profit margin. Rule of 40 = YoY sales growth + profit margin
Pine Script® indicator
by barnabygraham
May 22, 2023
22

Select market data provided by ICE Data services. Select reference data provided by FactSet. Copyright © 2025 FactSet Research Systems Inc.© 2025 TradingView, Inc.

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