Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
XeroASX:XRO +0.93%74 EV-to-EBITDA is 16.37 as of Jul. 17, 2026, which is 79% below its 10-year median of 76.36. GuruFocus rates ASX:XRO with a GF Score™ of 74/100 and a GF Value™ of A$199.08 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,950 Software companies, Xero ranks worse than 66.72% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Xero's enterprise value is A$12,133 Mil.
Xero's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was A$741 Mil. Therefore, Xero's EV-to-EBITDA for today is 16.37.
The historical rank and industry rank for Xero's EV-to-EBITDA or its related term are showing as below:
ASX:XRO'
s EV-to-EBITDA Range Over the Past 10 Years
Min: -206.39 Med: 76.36 Max: 260.12
Current: 16.37
During the past 13 years, the highest EV-to-EBITDA of Xero was 260.12. The lowest was -206.39. And the median was 76.36.
ASX:XRO's EV-to-EBITDA is ranked worse than 66.72% of 1950
companies
in the Software industry
Industry Median: 10.49
vs ASX:XRO: 16.37
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
As of today (2026-07-17), Xero's stock price is A$69.72.
Xero's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was A$0.841. Therefore, Xero's PE Ratio (TTM) for today is 82.90.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Xero (ASX:XRO) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Xero's share price for today is A$69.72.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Xero's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was A$0.841.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Xero's EV-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ASX:XRO vs UBER, SHOP, CRM: EV-to-EBITDA Comparison
For the Software - Application subindustry, Xero's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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 EV-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Xero's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Xero's EV-to-EBITDA falls into.
Xero's current Enterprise Value is A$12,133 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Xero's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was A$741 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Xero (ASX:XRO) has a EV-to-EBITDA of 16.37 as of Jul. 17, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Xero. This is 79% below median its historical median of 76.36. According to the industry distribution chart, Xero ranks #1301 out of 1950 companies in the Software industry, placing it in the top 66.7%.
Is Xero's EV-to-EBITDA too high?
Xero's current EV-to-EBITDA of 16.37 is 79% below median its 10-year median of 76.36. The Software industry median EV-to-EBITDA is 10.49. Xero's value of 16.37 is 56.1% above this industry median. Based on the distribution chart, Xero ranks #1301 out of 1950 companies in the Software industry, which is below the industry midpoint. Overall, Xero has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Xero's EV-to-EBITDA compare to UBER and SHOP?
According to the Software industry distribution chart, Xero ranks #1301 out of 1950 companies for EV-to-EBITDA. This places Xero in the lower half of its industry. The industry median EV-to-EBITDA is 10.49. Xero's value of 16.37 is 56.1% above this benchmark. While the company's 10-year median is 76.36 vs. the industry median of 10.49, 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 EV-to-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.49, based on 1,950 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Xero's current EV-to-EBITDA of 16.37 is 56.1% 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 EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Xero. For the Software industry, the median EV-to-EBITDA is 10.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xero's current EV-to-EBITDA is 16.37, which is 79% below median its own 10-year median of 76.36. 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$199.08, compared to a current price of A$69.72 — trading 65% below its estimated fair value. The current EV-to-EBITDA is 16.37, which is 79% below median its 10-year median of 76.36 and 56.1% above the Software industry median of 10.49. Xero's overall GF Score™ is 74/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Xero (ASX:XRO), the current EV-to-EBITDA is 16.37 as of Jul. 17, 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$69.72 is trading 65% below its estimated GF Value™ of A$199.08.
GuruFocus considers Xero to be Possible Value Trap.
Key valuation signals for ASX:XRO:
EV-to-EBITDA: 16.37 (79% below median its 10-year median of 76.36)
GF Value™: A$199.08 vs. price of A$69.72 (65% below fair value)
Industry Position: 56.1% above the Software median (#1301 of 1950)
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.
74GF Score
Get the complete analysis for ASX:XRO
EV-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:XRO has been successfully added to your 
