SaaS and the rule of 40, keys to value creation metric

McKinsey explores the popular metric, which says that a SaaS company’s growth rate when added to its free cash flow rate should equal 40 percent or higher. Businesses exceed the rule only 16% of the time.

https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/saas-and-the-rule-of-40-keys-to-the-critical-value-creation-metric