Value Sense
TOST
Toast, Inc. (TOST)
Last Price$36.8(4.6%)
Market Cap$21.7B
LTM Rule of 40 (EBIT margin)
28.7%
5Y avg
72.9%
Software - Infrastructure industry median
12.7%
Stock quality & Intrinsic value
7/10
0.7% undervalued
TOST
is 71.6% undervalued
learn more -->
50+
undervalued stocks
Start beating the S&P 500

Toast, Inc. Rule of 40 (EBIT margin)

Annual
Quarterly
LTM
Industry median
Company stand-alone
TOST
Technology
Crunching data... Almost there!
Dec'19Dec'20Dec'21Dec'22Dec'23
Rule of 40 (EBIT margin)
0.0%
(3.0%)
93.8%
46.1%
34.1%
TOST
Key metrics and insights to make informed decisions.
View full analysis
Overvalued or undervalued?
Check the intrinsic value for TOST and see if it's the right time to invest.
Dive in

Toast, Inc. (TOST) Rule of 40 (EBIT margin) comparison analysis

General

LTM Rule of 40 (EBIT margin)

OTHER METRICS

Company name

Revenue growth

EPS growth

Net Income margin

Toast, Inc. logo
Toast, Inc.TOST
28.7%
41.5%
(13.0%)
(6.4%)
Median Peer Set
38.3%
18.3%
17.7%
20.7%
Robinhood Markets, Inc. logo
Robinhood Markets, Inc.HOOD
93.4%
36.6%
(48.1%)
(28.7%)
Microsoft Corporation logo
Microsoft CorporationMSFT
60.0%
15.7%
22.0%
36.0%
Adobe Inc. logo
Adobe Inc.ADBE
46.8%
10.8%
4.7%
25.9%
Fortinet, Inc. logo
Fortinet, Inc.FTNT
42.5%
20.1%
36.1%
21.6%
Palantir Technologies Inc. logo
Palantir Technologies Inc.PLTR
39.6%
28.8%
114.9%
16.1%
Oracle Corporation logo
Oracle CorporationORCL
37.1%
6.0%
21.0%
19.8%
CrowdStrike Holdings, Inc. logo
CrowdStrike Holdings, Inc.CRWD
31.2%
36.3%
N/A
2.9%
Palo Alto Networks, Inc. logo
Palo Alto Networks, Inc.PANW
24.9%
16.5%
457.2%
32.1%
Synopsys, Inc. logo
Synopsys, Inc.SNPS
19.7%
4.9%
14.5%
36.9%
Block, Inc. logo
Block, Inc.SQ
19.7%
25.0%
N/A
0.0%

TOST key stats

USD
Millions
Billions
Annual
Quarterly
Trailing
Key stats
Income statement
Balance sheet
Cash Flow Statement
Valuation
Ratios
Per share
Per employee
Dividends & Yields
Dec'19Dec'20Dec'21Dec'22Dec'23
Revenue
% growth
665.0
0.0%
823.1
23.8%
1,705.0
107.1%
2,731.0
60.2%
3,865.0
41.5%
Cost of Goods Sold (COGS)603.0682.71,391.02,220.03,031.0
Gross Profit
% margin
62.0
9.3%
140.4
17.1%
314.0
18.4%
511.0
18.7%
834.0
21.6%
Operating Expenses275.0360.6542.0895.01,121.0
Research & Development Expenses (R&D)64.0108.6163.0282.0358.0
Selling, General & Administrative Expenses (SG&A)211.0252.0379.0613.0763.0
Operating Income
% margin
(213.0)
(32.0%)
(220.1)
(26.7%)
(228.0)
(13.4%)
(384.0)
(14.1%)
(287.0)
(7.4%)
Interest Income2.00.812.011.00.0
Interest Expense0.012.712.011.00.0
Pre-tax Income(212.0)(247.9)(490.0)(277.0)(244.0)
Income Tax
% effective tax rate
(3.0)
1.4%
0.3
(0.1%)
(3.0)
0.6%
(2.0)
0.7%
2.0
(0.8%)
Net Income
% margin
(209.0)
(31.4%)
(248.2)
(30.2%)
(487.0)
(28.6%)
(275.0)
(10.1%)
(246.0)
(6.4%)
EPS(0.42)(0.49)(0.96)(0.54)(0.47)
Diluted EPS(0.42)(0.49)(0.96)(0.54)(0.47)
EBITDA
% margin
(205.9)
(31.0%)
(208.2)
(25.3%)
(207.0)
(12.1%)
(360.0)
(13.2%)
(255.0)
(6.6%)

Discover more Stock Ideas

Undervalued stocks right now

Undervalued stocks right now

Discover the top 20 best undervalued stocks to buy for Mar 2025, listed on the Nasdaq or NYSE.

3M Return 32.1%
S&P Outperformance 19.1%
Next 3M Predicted Return 20.3%
Undervalued growth stocks

Undervalued growth stocks

Discover the top 20 best undervalued large-cap growth stocks to buy for Mar 2025, listed on the Nasdaq or NYSE.

3M Return 35.3%
S&P Outperformance 22.3%
Next 3M Predicted Return 26.8%
Undervalued dividend stocks

Undervalued dividend stocks

Discover the top 20 best undervalued high-yield dividend stock that offers both growth potential and attractive dividend returns for Mar 2025.

3M Return 28.4%
S&P Outperformance 15.4%
Next 3M Predicted Return 16.9%
More ideas -->

FAQ

1) What is Toast, Inc.'s Rule of 40 (EBIT margin)?

As of today, Microsoft Corp's last 12-month Rule of 40 (EBIT margin) is 28.7%, based on the financial report for Dec 31, 2024 (Q4’2024). The average annual Rule of 40 (EBIT margin) for Toast, Inc. have been 69.9% over the past three years, and 72.9% over the past five years.

2) Is Toast, Inc.'s Rule of 40 (EBIT margin) Good?

As of today, Toast, Inc.'s Rule of 40 (EBIT margin) is 28.7%, which is higher than industry median of 12.7%. It indicates that Toast, Inc.'s Rule of 40 (EBIT margin) is Good.

3) How does Toast, Inc.'s Rule of 40 (EBIT margin) compare to its peers?

As of today, Toast, Inc.'s Rule of 40 (EBIT margin) is 28.7%, which is lower than peer median of 38.3%. The list of peers includes HOOD, MSFT, ADBE, FTNT, PLTR, ORCL, CRWD, PANW, SNPS, SQ.