Balance: The secret component of profitable growth
Industry Sector Enterprise Value to Revenue (EV/R)
Source: CapIQ - Accenture Analysis.
A dramatic shift in market dynamics
Software companies balance against the Rule of 40
Balance limit at +/- 5%. | Source: Accenture analysis.
One industry, four generations

Revenue
growth*

Total Operating
Expenses (% of LTM Rev)

Operational
Efficiency Score **
Classic Software
12%
89%
0.12x
Gen 1 SaaS
26%
108%
0.20x
Gen 2 SaaS
39%
123%
0.24x
Gen 3 SaaS
48%
140%
0.24x
*Last 12 months
** Operational Efficiency Score definition: FY22 Forecasted revenue growth compared to Total Operating Expenses. Scale: (0.00x - 1.00x)