Enterprise software & cloud Bessemer's rule of X where X = 3

Rule of X: 3 x 2025-27 revenue CAGR + 2024 EBITDA margin. Share prices as of 6 Feb 2025. Analyst consensus estimates. R-square of 0.66. Example: a company growing 20% and EBITDA of 40% = Rule of X score of 3 x 20% + 40% = 100% which would imply a 15x revenue multiple.
Source: Dealroom.co and Flow PartnersEmbed Download image