XeroASX:XRO +1.77%81 FCF Yield % is 3.60 as of Jun. 26, 2026, which is 1465% above its 10-year median of 0.23. GuruFocus rates ASX:XRO with a GF Score™ of 81/100 and a GF Value™ of A$195.57 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,868 Software companies, Xero ranks better than 61.99% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
As of today, Xero's Trailing 12-Month Free Cash Flow is A$432 Mil, and Market Cap is A$11,974 Mil. Therefore, Xero's FCF Yield % for today is 3.60%.
The historical rank and industry rank for Xero's FCF Yield % or its related term are showing as below:
ASX:XRO'
s FCF Yield % Range Over the Past 10 Years
Min: -3.54 Med: 0.23 Max: 4.23
Current: 3.6
During the past 13 years, the highest FCF Yield % of Xero was 4.23%. The lowest was -3.54%. And the median was 0.23%.
ASX:XRO's FCF Yield % is ranked better than 61.99% of 2868
companies
in the Software industry
Industry Median: 0.885
vs ASX:XRO: 3.60
Xero's FCF Margin % for the quarter that ended in Mar. 2026 was 12.55%.
Xero FCF Yield % Explanation
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Xero FCF Yield % Related Terms
Xero FCF Yield % Historical Data
* Premium members only.
The historical data trend for Xero's FCF Yield % 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 CRM, SHOP, UBER: FCF Yield % Comparison
For the Software - Application subindustry, Xero's FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Software Industry
For the Software industry and Technology sector, Xero's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Xero's FCF Yield % falls into.
* 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 FCF Yield % of 3.60 as of Jun. 26, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Xero and its competitors. This is 1465% above median its historical median of 0.23. According to the industry distribution chart, Xero ranks #1090 out of 2868 companies in the Software industry, placing it in the top 38%.
Is Xero's FCF Yield % too high?
Xero's current FCF Yield % of 3.60 is 1465% above median its 10-year median of 0.23. The Software industry median FCF Yield % is 0.89. Xero's value of 3.60 is 306.8% above this industry median. Based on the distribution chart, Xero ranks #1090 out of 2868 companies in the Software industry, which is above the industry midpoint. Overall, Xero has a GF Score™ of 81/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Xero's FCF Yield % compare to CRM and SHOP?
According to the Software industry distribution chart, Xero ranks #1090 out of 2868 companies for FCF Yield %. This puts Xero in the upper half of its industry. The industry median FCF Yield % is 0.89. Xero's value of 3.60 is 306.8% above this benchmark. While the company's 10-year median is 0.23 vs. the industry median of 0.89, 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 FCF Yield % for a Software company?
The median FCF Yield % among Software companies is 0.89, based on 2,868 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Xero's current FCF Yield % of 3.60 is 306.8% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Xero and its competitors. For the Software industry, the median FCF Yield % is 0.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xero's current FCF Yield % is 3.60, which is 1465% above median its own 10-year median of 0.23. 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$195.57, compared to a current price of A$69.05 — trading 64.7% below its estimated fair value. The current FCF Yield % is 3.60, which is 1465% above median its 10-year median of 0.23 and 306.8% above the Software industry median of 0.89. Xero's overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Xero (ASX:XRO), the current FCF Yield % is 3.60 as of Jun. 26, 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$69.05 is trading 64.7% below its estimated GF Value™ of A$195.57.
GuruFocus considers Xero to be Possible Value Trap.
Key valuation signals for ASX:XRO:
FCF Yield %: 3.60 (1465% above median its 10-year median of 0.23)
GF Value™: A$195.57 vs. price of A$69.05 (64.7% below fair value)
Industry Position: 306.8% above the Software median (#1090 of 2868)
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.
81GF Score
Get the complete analysis for ASX:XRO
FCF Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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