Investing in the right SaaS

Many of our stocks are screened in this article.


Some takeaways:

Companies like Zuora, AppFolio or Alteryx appear fairly valued.
Companies like Okta and Atlassian appear overvalued.
Companies like Salesforce, Adobe or Baozun appear undervalued.

Here are immediate actions I took from the chart:

I would rather add to companies that are below the trendline.
Focusing on companies that are winners of the rule of 40 (in green), my SaaS watch list should be narrowed to a selected few: Paycom Software, Adobe, Square, The Trade Desk, Baozun and Alteryx.
While I really like both companies, I am not considering adding to Okta or Atlassian in the near future given their extremely stretched valuations. :…