How does XRO's PE Ratio compare to its peers?

XRO is expensive based on its Price-To-Earnings Ratio (136.5x) compared to the peer average (94.6x).

How does XRO's PE Ratio compare vs other companies in the AU Software Industry?

XRO is expensive based on its Price-To-Earnings Ratio (136.5x) compared to the Australian Software industry average (64x).

What is XRO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

XRO is expensive based on its Price-To-Earnings Ratio (136.5x) compared to the estimated Fair Price-To-Earnings Ratio (75.6x).

What is the Fair Price of XRO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

XRO (A$172.92) is trading above our estimate of [[fair value]] (A$148.47)

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Target price is less than 20% higher than the current share price.

Xero (ASX:XRO) - Stock Price, News & Analysis

XRO Stock Overview

A software as a service company, provides online business solutions for small businesses and their advisors in Australia, New Zealand, and internationally. More details

XRO fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	4/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

Rewards

Earnings are forecast to grow 26.4% per year

Became profitable this year

Risk Analysis

No risks detected for XRO from our risk checks.

Xero Limited Competitors

WiseTech Global

ASX:WTC

AU$40.4b

Technology One

ASX:TNE

AU$9.9b

Objective

ASX:OCL

AU$1.6b

Iress

ASX:IRE

AU$1.7b

Price History & Performance

Summary of all time highs, changes and price drops for Xero
Historical stock prices
Current Share Price	AU$172.92
52 Week High	AU$177.62
52 Week Low	AU$98.75
Beta	1.0
11 Month Change	18.24%
3 Month Change	20.73%
1 Year Change	73.68%
33 Year Change	24.14%
5 Year Change	112.75%
Change since IPO	3,759.82%

Estimating The Fair Value Of Xero Limited (ASX:XRO)

Oct 08

Recent updates

Xero Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

May 14

Xero (ASX:XRO) Is Looking To Continue Growing Its Returns On Capital

Apr 07

How Much Are Xero Limited (ASX:XRO) Insiders Taking Off The Table?

Mar 19

Does Xero (ASX:XRO) Deserve A Spot On Your Watchlist?

Mar 04

What Is The Ownership Structure Like For Xero Limited (ASX:XRO)?

Feb 17

Announcing: Xero (ASX:XRO) Stock Soared An Exciting 868% In The Last Five Years

Feb 04

Do Its Financials Have Any Role To Play In Driving Xero Limited's (ASX:XRO) Stock Up Recently?

Jan 21

These 4 Measures Indicate That Xero (ASX:XRO) Is Using Debt Safely

Jan 05

What We Make Of Xero's (ASX:XRO) Returns On Capital

Dec 23

This Insider Has Just Sold Shares In Xero Limited (ASX:XRO)

Dec 05

Here's Why We Think Xero (ASX:XRO) Is Well Worth Watching

Nov 24

Shareholder Returns

	XRO	AU Software	AU Market
7D	0.2%	-3.6%	0.9%
1Y	73.7%	80.4%	18.4%

Return vs Industry: XRO underperformed the Australian Software industry which returned 80.4% over the past year.

Return vs Market: XRO exceeded the Australian Market which returned 18.4% over the past year.

Price Volatility

Is XRO's price volatile compared to industry and market?
XRO volatility
XRO Average Weekly Movement	3.3%
Software Industry Average Movement	9.2%
Market Average Movement	8.5%
10% most volatile stocks in AU Market	17.5%
10% least volatile stocks in AU Market	3.2%

Stable Share Price: XRO has not had significant price volatility in the past 3 months compared to the Australian market.

Volatility Over Time: XRO's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	4,356	Sukhinder Cassidy	www.xero.com

Xero Limited, together with its subsidiaries, a software as a service company, provides online business solutions for small businesses and their advisors in Australia, New Zealand, and internationally. It offers Xero, an open platform that connects small businesses to a range of solutions, which helps to manage their finances. The company also provides Xero mobile app; and accountant/bookkeeper tools, including Xero HQ, Xero Practice Manager, Xero Workpapers, and Xero Cashbook or Xero Ledger.

Xero Limited Fundamentals Summary

How do Xero's earnings and revenue compare to its market cap?
XRO fundamental statistics
Market cap	AU$26.41b
Earnings (TTM)	AU$193.46m
Revenue (TTM)	AU$1.71b

136.5x

P/E Ratio

15.4x

P/S Ratio

Is XRO overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
XRO income statement (TTM)
Revenue	NZ$1.91b
Cost of Revenue	NZ$213.28m
Gross Profit	NZ$1.70b
Other Expenses	NZ$1.48b
Earnings	NZ$215.65m

Last Reported Earnings

Sep 30, 2024

Next Earnings Date

May 15, 2025

Earnings per share (EPS)	1.41
Gross Margin	88.83%
Net Profit Margin	11.29%
Debt/Equity Ratio	57.3%

How did XRO perform over the long term?

See historical performance and comparison

XRO Stock Overview

Rewards

Risk Analysis

Xero Limited Competitors

ASX:WTC

AU$40.4b

ASX:TNE

AU$9.9b

ASX:OCL

AU$1.6b

ASX:IRE

AU$1.7b

Price History & Performance

Recent News & Updates

First half 2025 earnings: EPS misses analyst expectations

Estimating The Fair Value Of Xero Limited (ASX:XRO)

Xero Limited Announces Step Down of Kirsty Godfrey-Billy as CFO on 31 March 2025

Xero Limited Announces CFO Transition At End of FY25

Xero Limited (ASX:XRO) agreed to acquire Syft Analytics for $70 million.

Xero Unveils New Inventory Management Software, Xero Inventory Plus, to Help Small Goods-Based Businesses Grow Profitably

Recent updates

First half 2025 earnings: EPS misses analyst expectations

Estimating The Fair Value Of Xero Limited (ASX:XRO)

Xero Limited Announces Step Down of Kirsty Godfrey-Billy as CFO on 31 March 2025

Xero Limited Announces CFO Transition At End of FY25

Xero Limited (ASX:XRO) agreed to acquire Syft Analytics for $70 million.

Xero Unveils New Inventory Management Software, Xero Inventory Plus, to Help Small Goods-Based Businesses Grow Profitably

Xero (ASX:XRO) Could Easily Take On More Debt

Returns Are Gaining Momentum At Xero (ASX:XRO)

Xero's (ASX:XRO) Solid Earnings Are Supported By Other Strong Factors

Full year 2024 earnings released: EPS: NZ$1.15 (vs NZ$0.76 loss in FY 2023)

Is Xero Limited (ASX:XRO) Worth AU$125 Based On Its Intrinsic Value?

Xero Limited to Report Fiscal Year 2025 Results on May 15, 2025

Now 20% overvalued after recent price rise

Pinning Down Xero Limited's (ASX:XRO) P/S Is Difficult Right Now

Now 21% overvalued after recent price rise

Is It Time To Consider Buying Xero Limited (ASX:XRO)?

Is Xero Limited (ASX:XRO) Expensive For A Reason? A Look At Its Intrinsic Value

Now 25% overvalued after recent price rise

Returns On Capital Are Showing Encouraging Signs At Xero (ASX:XRO)

Xero (ASX:XRO) Seems To Use Debt Rather Sparingly

First half 2024 earnings: EPS and revenues miss analyst expectations

Investors Will Want Xero's (ASX:XRO) Growth In ROCE To Persist

Is Xero (ASX:XRO) A Risky Investment?

Xero Limited (ASX:XRO) Shares Could Be 33% Above Their Intrinsic Value Estimate

X15 ventures entered into an agreement to acquire Waddle Loans Pty Ltd from Xero Limited (ASX:XRO).

Is Now The Time To Look At Buying Xero Limited (ASX:XRO)?

Unpleasant Surprises Could Be In Store For Xero Limited's (ASX:XRO) Shares

Xero (ASX:XRO) Is Doing The Right Things To Multiply Its Share Price

Xero Limited Announces Board Changes

Is Xero (ASX:XRO) A Risky Investment?

Full year 2023 earnings released: NZ$0.76 loss per share (vs NZ$0.061 loss in FY 2022)

Returns At Xero (ASX:XRO) Are On The Way Up

Xero (ASX:XRO) Seems To Use Debt Quite Sensibly

We Like These Underlying Return On Capital Trends At Xero (ASX:XRO)

We Think Xero (ASX:XRO) Can Stay On Top Of Its Debt

First half 2023 earnings: Revenues exceed analysts expectations while EPS lags behind

Xero Limited Announces CEO Changes

A Look At The Fair Value Of Xero Limited (ASX:XRO)

Is Now The Time To Look At Buying Xero Limited (ASX:XRO)?

Is Xero (ASX:XRO) A Risky Investment?

Xero (ASX:XRO) Might Have The Makings Of A Multi-Bagger

Should You Investigate Xero Limited (ASX:XRO) At AU$84.78?

Does This Valuation Of Xero Limited (ASX:XRO) Imply Investors Are Overpaying?

Full year 2022 earnings: EPS and revenues exceed analyst expectations

Xero (ASX:XRO) Might Have The Makings Of A Multi-Bagger

Xero Limited to Report First Half, 2023 Results on Nov 10, 2022

Independent Non-Executive Director recently bought AU$333k worth of stock

Xero Limited Appoints Brian McAndrews to Its Board of Directors

Independent Non-Executive Director recently bought AU$80k worth of stock

These 4 Measures Indicate That Xero (ASX:XRO) Is Using Debt Reasonably Well

Xero Limited (ASX:XRO) entered into an agreement to acquire Trilogy Software Inc. for CAD 55 million.

First half 2022 earnings released: NZ$0.04 loss per share (vs NZ$0.24 profit in 1H 2021)

Returns On Capital Are Showing Encouraging Signs At Xero (ASX:XRO)

Is Now The Time To Put Xero (ASX:XRO) On Your Watchlist?

Xero (ASX:XRO) Has A Rock Solid Balance Sheet

Non-Executive Director Andrew Winkler has left the company

We Take A Look At Whether Xero Limited's (ASX:XRO) CEO May Be Underpaid

Consensus forecasts updated

Consensus forecasts updated