Why the Rule of 40 Separates the Compounders from the Zombies in SaaS Valuation 20 Jan 2026 Post a Comment The Rule of 40 is a valuation principle stating that a software company's combined revenue growth rate and profit margin (ideally Free Cash Flo… Cloud StocksCRWDDDOGenInvesting StrategyNet Dollar RetentionRule of 40SaaS ValuationSNOW