GURUFOCUS.COM » STOCK LIST » Technology » Software » Xero Ltd (STU:0XE) » Definitions » PEG Ratio

Xero (STU:0XE) PEG Ratio : 3.67 (As of Dec. 14, 2024)


View and export this data going back to 2014. Start your Free Trial

What is Xero PEG Ratio?

PE Ratio without NRI / 5-Year EBITDA Growth Rate*

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Xero's PE Ratio without NRI is 117.58. Xero's 5-Year EBITDA growth rate is 32.00%. Therefore, Xero's PEG Ratio for today is 3.67.

* The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


The historical rank and industry rank for Xero's PEG Ratio or its related term are showing as below:

STU:0XE' s PEG Ratio Range Over the Past 10 Years
Min: 3.14   Med: 3.78   Max: 4.81
Current: 3.86


During the past 12 years, Xero's highest PEG Ratio was 4.81. The lowest was 3.14. And the median was 3.78.


STU:0XE's PEG Ratio is ranked worse than
77.27% of 814 companies
in the Software industry
Industry Median: 1.705 vs STU:0XE: 3.86

Peter Lynch thinks a company with a P/E ratio equal to its growth rate is fairly valued.


Xero PEG Ratio Historical Data

The historical data trend for Xero's PEG Ratio 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.

* Premium members only.

Xero PEG Ratio Chart

Xero Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
PEG Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - 3.59

Xero Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
PEG Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - 3.59 -

Competitive Comparison of Xero's PEG Ratio

For the Software - Application subindustry, Xero's PEG Ratio, along with its competitors' market caps and PEG Ratio 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's PEG Ratio Distribution in the Software Industry

For the Software industry and Technology sector, Xero's PEG Ratio distribution charts can be found below:

* The bar in red indicates where Xero's PEG Ratio falls into.



Xero PEG Ratio Calculation

PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The ratio we use is the 5-Year EBITDA growth rate.

Xero's PEG Ratio for today is calculated as

PEG Ratio=PE Ratio without NRI/5-Year EBITDA Growth Rate*
=117.57857974389/32.00
=3.67

* 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.

* Note: The 5-Year EBITDA Growth Rate is the 5-year average EBITDA per share growth rate. While the denominator is a percentage, we use the whole number as opposed to the decimal form for the calculation. For example, 5% would be shown as 5 as opposed to 0.05. If it's smaller than or equal to 0, then the PEG Ratio is not calculated.


Xero  (STU:0XE) PEG Ratio Explanation

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the P/E ratio divided by the growth ratio. He thinks a company with a P/E ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a P/E of 20, instead of a company growing 10% a year with a P/E of 10.


Xero PEG Ratio Related Terms

Thank you for viewing the detailed overview of Xero's PEG Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Xero Business Description

Traded in Other Exchanges
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 midsize 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 United Kingdom.

Xero Headlines

No Headlines