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XeroASX:XRO -4.45%73 3-Year EBITDA Growth Rate is 59.00% as of Mar. 2026, which is 51% above its 10-year median of 39.00. 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. Among 2,072 Software companies, Xero ranks better than 88.27% on this metric.
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.
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.
Xero 3-Year EBITDA Growth Rate Related Terms
ASX:XRO vs UBER, SHOP, CRM: 3-Year EBITDA Growth Rate Comparison
For the Software - Application subindustry, Xero's 3-Year EBITDA Growth Rate, along with its competitors' market caps and 3-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 3-Year EBITDA Growth Rate vs Software Industry
For the Software industry and Technology sector, Xero's 3-Year EBITDA Growth Rate distribution charts can be found below:
* The bar in red indicates where Xero's 3-Year EBITDA Growth Rate falls into.
This is the 3-year average growth rate of EBITDA per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
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 3-Year EBITDA Growth Rate of 59.00% mean?
Xero (ASX:XRO) has a 3-Year EBITDA Growth Rate of 59.00% as of Mar. 2026. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for Xero and its competitors. This is 51% above median its historical median of 39.00. According to the industry distribution chart, Xero ranks #243 out of 2072 companies in the Software industry, placing it in the top 11.7%.
Is Xero's 3-Year EBITDA Growth Rate too high?
Xero's current 3-Year EBITDA Growth Rate of 59.00% is 51% above median its 10-year median of 39.00. The Software industry median 3-Year EBITDA Growth Rate is 12.40. Xero's value of 59.00% is 375.8% above this industry median. Based on the distribution chart, Xero ranks #243 out of 2072 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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 3-Year EBITDA Growth Rate compare to UBER and SHOP?
According to the Software industry distribution chart, Xero ranks #243 out of 2072 companies for 3-Year EBITDA Growth Rate. This places Xero in the top 12% of its industry — outperforming the majority of peers. The industry median 3-Year EBITDA Growth Rate is 12.40. Xero's value of 59.00% is 375.8% above this benchmark. While the company's 10-year median is 39.00 vs. the industry median of 12.40, Xero has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year EBITDA Growth Rate for a Software company?
The median 3-Year EBITDA Growth Rate among Software companies is 12.40, based on 2,072 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year EBITDA Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year EBITDA Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Xero's current 3-Year EBITDA Growth Rate of 59.00% is 375.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year EBITDA Growth Rate mean?
A high 3-Year EBITDA Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for Xero and its competitors. For the Software industry, the median 3-Year EBITDA Growth Rate is 12.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xero's current 3-Year EBITDA Growth Rate is 59.00%, which is 51% above median its own 10-year median of 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 3-Year EBITDA Growth Rate is 59.00%, which is 51% above median its 10-year median of 39.00 and 375.8% above the Software industry median of 12.40. 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 3-Year EBITDA Growth Rate calculated?
3-Year EBITDA Growth Rate is calculated from a company's financial statements. For Xero (ASX:XRO), the current 3-Year EBITDA Growth Rate is 59.00% 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:
3-Year EBITDA Growth Rate: 59.00% (51% above median its 10-year median of 39.00)
GF Value™: A$199.84 vs. price of A$61.58 (69.2% below fair value)
Industry Position: 375.8% above the Software median (#243 of 2072)
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 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
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