The Software Valuation Playbook
The definitive guide to investing in software. Understand SaaS unit economics, valuation multiples, the Rule of 40, and how to identify generational compounders.
Explore the Playbook
Select a chapter below to access the deep-dive analysis, complete with embedded interactives and stock models.
Why Software Eats the World
The paradigm of software business models, marginal costs, and recurring revenue.
SaaS Unit Economics
Revenue is vanity, margins are sanity. Break down LTV/CAC and Payback Periods.
The Rule of 40
Balancing top-line growth with free cash flow margins.
Valuation Multiples
EV/NTM Revenue, EV/FCF, and growth-adjusted benchmarking.
Net Revenue Retention
The most important metric in software. Measure product stickiness and expansion.
Moats & Advantages
Switching costs, network effects, and scale economics.
Value Traps vs. Compounders
Distinguishing cheap traps from structural, generational compounders.
The AI Premium
How Artificial Intelligence reshapes software valuations and TAMs.
Portfolio Construction
Building a balanced software investment portfolio to manage risk.
Stock Teardowns
Real-world case studies applying the frameworks.
