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Xero

ASX:XRO · NZXROE0001S2
SoftwareLarge

360

68
EV / EBIT12
Price / Owner Earnings5
Owner Earnings Yield41
Dividend Yield1
Price/Sales32
EV / Gross Profit62
Price/Book28
Return on Capital47
Cash Return on Capital43
Return on Equity37
EBIT Margin59
Gross Profitability39
Cash Conversion91
Accruals8
Owner Earnings Margin43
Sales growth96
Profit Growth59
Long-Term EPS Growth98
Owner Earnings Growth12
Reinvestment70
Price momentum1
Debt load35
Refinancing30
Debt Payback31
Liquidity22
Analyst ratings86
Opinion Changes57
Price Target Upside90
Market mood69
Value Creation10/20creating some value
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Xero clears its cost of capital, but the record is mixed across the five tests. Real value creation, just not yet consistent.

Profile

CountryNew Zealand
IndustrySoftware
SizeLarge
TypePublic Company
ExchangeASX
Founded2006
Employees4,362
Websitexero.com/nz
ISINNZXROE0001S2
Last UpdateApr 2, 2026
Indices
ASX 100 (Australia)ASX 200 (Australia)ASX 300 (Australia)ASX 50 (Australia)
Themes
HRTechFintechInvoice Management SoftwareSoftware DevelopmentArtificial IntelligenceAccountingBankingBillingCollaborationFinanceFinTechPersonal FinanceSaaSSoftware

Description

Xero Limited (Xero) is a global technology platform that provides accounting software and business solutions primarily tailored for small businesses. The company aims to simplify financial management through a cloud-based platform that integrates var…

Analysis

Middle-of-the-road

Xero Limited sits in the middle of our grid: average quality, average price, no obvious signal in either direction.

On valuation, the picture is expensive. The owner-earnings multiple stands at 80.8×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 25% a year, against analyst forecasts of 33%. The price, in other words, assumes less than the experts do.

Growth is moderate; the safety picture is sturdy. The company scores 10/20 on our value-creation score: creating some value.

Flags to be aware of: A large part of the company's book value is the price paid for past acquisitions. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
25
2023202420252026

All-time high

53

Jan 2025

All-time low

4

Jan 2023

Average rank

36

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
32
12
13
9
Price/Earnings
9
5
15
5
Price/Book
28
12
8
9
Dividend Yield
1
1
1
1
Value (overall)
8
9
1
6

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →