Xero (ASX:XRO) 5-Year EBITDA Growth Rate: 39.00% (As of Mar. 2026)

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ASX:XRO Xero Ltd ASX:XRO
73 GF Score
Price A$61.58
GF Value A$199.84
Valuation Possible Value Trap
! 7 Warning Signs
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What is Xero 5-Year EBITDA Growth Rate?

Xero ASX:XRO -4.45% 73 5-Year EBITDA Growth Rate is 39.00% as of Mar. 2026. GuruFocus rates ASX:XRO with a GF Score™ of 73/100 and a GF Value™ of A$199.84 (Possible Value Trap). The stock has 7 warning signs investors should review.

Xero's EBITDA per Share for the six months ended in Mar. 2026 was A$2.04.

During the past 3 years, the average EBITDA Per Share Growth Rate was 59.00% per year. During the past 5 years, the average EBITDA Per Share Growth Rate was 39.00% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.

During the past 13 years, the highest 3-Year average EBITDA Per Share Growth Rate of Xero was 81.80% per year. The lowest was -58.40% per year. And the median was 39.00% per year.

Xero  (ASX:XRO) 5-Year EBITDA Growth Rate Explanation

EBITDA per Share is the amount of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) per outstanding share of the company's stock.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is what the company earns before it expenses interest, taxes, depreciation and amortization.

5-Year EBITDA Growth Rate gives an overview of the company's growth in operating profitability and is an important factor used in calculating Peter Lynch Fair Value.

Xero 5-Year EBITDA Growth Rate Related Terms

ASX:XRO vs UBER, SHOP, CRM: 5-Year EBITDA Growth Rate Comparison

For the Software - Application subindustry, Xero's 5-Year EBITDA Growth Rate, along with its competitors' market caps and 5-Year EBITDA Growth Rate data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Xero 5-Year EBITDA Growth Rate vs Software Industry

For the Software industry and Technology sector, Xero's 5-Year EBITDA Growth Rate distribution charts can be found below:

* The bar in red indicates where Xero's 5-Year EBITDA Growth Rate falls into.


ASX:XRO
73GF Score
Xero Ltd ASX:XRO
5-Year EBITDA Growth Rate is just one metric. See GF Score™, valuation, warning signs, and more.
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Xero 5-Year EBITDA Growth Rate Calculation

This is the 5-year average growth rate of EBITDA per Share. The growth rate is calculated with least square regression.

Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.

What does a 5-Year EBITDA Growth Rate of 39.00% mean?
Xero (ASX:XRO) has a 5-Year EBITDA Growth Rate of 39.00% as of Mar. 2026. 5-Year EBITDA Growth Rate is the 5-year average growth rate of EBITDA per share. View historical data for Xero and its competitors.
Is Xero's 5-Year EBITDA Growth Rate too high?
Xero's current 5-Year EBITDA Growth Rate is 39.00%. Overall, Xero has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Xero's 5-Year EBITDA Growth Rate compare to UBER and SHOP?
Xero's 5-Year EBITDA Growth Rate of 39.00% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year EBITDA Growth Rate for a Software company?
A good 5-Year EBITDA Growth Rate depends on the Software industry context. However, 5-Year EBITDA Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year EBITDA Growth Rate mean?
A high 5-Year EBITDA Growth Rate can signal that a stock is expensive relative to its fundamentals. 5-Year EBITDA Growth Rate is the 5-year average growth rate of EBITDA per share. View historical data for Xero and its competitors. Xero's current 5-Year EBITDA Growth Rate is 39.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xero stock overvalued right now?
Based on GuruFocus' analysis, Xero (ASX:XRO) is currently considered Possible Value Trap. The stock's GF Value™ is A$199.84, compared to a current price of A$61.58 — trading 69.2% below its estimated fair value. The current 5-Year EBITDA Growth Rate is 39.00%. Xero's overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year EBITDA Growth Rate calculated?
5-Year EBITDA Growth Rate is calculated from a company's financial statements. For Xero (ASX:XRO), the current 5-Year EBITDA Growth Rate is 39.00% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Xero (ASX:XRO) Overvalued in 2026?

Based on GuruFocus' analysis, Xero stock appears to be undervalued. The current stock price of A$61.58 is trading 69.2% below its estimated GF Value™ of A$199.84. GuruFocus considers Xero to be Possible Value Trap.

Key valuation signals for ASX:XRO:

  • 5-Year EBITDA Growth Rate: 39.00%
  • GF Value™: A$199.84 vs. price of A$61.58 (69.2% below fair value)
  • GF Score™: 73/100 with 7 warning signs

No single metric tells the full story. See the ASX:XRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Xero Business Description

Other Exchanges XROLF:USA0XE:Germany
Address 19-23 Taranaki Street, Te Aro, Wellington, NTL, NZL, 6011
Xero is a technology company originating from New Zealand, providing cloud-based accounting software, primarily for small and midsized enterprises, or SMEs, and accounting practices. As a first mover in the space for cloud-based accounting software, Xero has grown quickly to achieve dominant market share in New Zealand and Australia, displacing legacy providers. Xero has also expanded beyond its home region toward other English-speaking countries, primarily the UK and the US.
73GF Score

Get the complete analysis for ASX:XRO

5-Year EBITDA Growth Rate is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$61.58
Price
A$199.84
GF Value