Let's examine SaaS companies* valuations by analyzing the EV/Gross Profit (GAAP) multiple relative to their projected revenue growth for the next year. This multiple considers product efficiency—gross profit margin. Gross profit margin is a critical metric for software

The Rule of 40 is a pivotal financial metric used to evaluate the performance of SaaS and other growth-oriented software companies. It serves as a benchmark that balances revenue growth and profitability, providing a comprehensive snapshot of a company's overall financial health.

The Price/Sales/Growth (PSG) metric is a valuable valuation tool used to evaluate software companies, offering a detailed perspective that goes beyond traditional price-to-sales (P/S) ratios by incorporating the growth aspect of the business. This metric is particularly relevant