Update shared on 11 Dec 2025
Analysts have modestly raised their price target on Xero, citing slightly higher long term discount rate assumptions and a marginally richer future earnings multiple that together support a refined fair value estimate near $182 per share.
Valuation Changes
- Fair Value: Unchanged at A$182.05 per share, indicating the updated assumptions broadly offset each other in the model.
- Discount Rate: Risen slightly from 8.12% to 8.19%, reflecting a modest increase in the required return applied to future cash flows.
- Revenue Growth: Effectively unchanged, edging up only fractionally from 24.11% to 24.11%, implying no material shift in top line expectations.
- Net Profit Margin: Essentially flat, dipping marginally from 12.95% to 12.95%, suggesting stable profitability assumptions.
- Future P/E: Risen slightly from 82.31x to 82.52x, pointing to a marginally richer valuation multiple applied to forecast earnings.
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