GURUFOCUS.COM » STOCK LIST » Technology » Software » Xero Ltd (ASX:XRO) » Definitions » Price-to-Free-Cash-Flow

Xero (ASX:XRO) Price-to-Free-Cash-Flow : 96.88 (As of May. 11, 2024)


View and export this data going back to 2012. Start your Free Trial

What is Xero Price-to-Free-Cash-Flow?

As of today (2024-05-11), Xero's share price is A$125.36. Xero's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2023 was A$1.29. Hence, Xero's Price-to-Free-Cash-Flow Ratio for today is 96.88.

The historical rank and industry rank for Xero's Price-to-Free-Cash-Flow or its related term are showing as below:

ASX:XRO' s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 96.88   Med: 359.81   Max: 1370.4
Current: 96.88

During the past 11 years, Xero's highest Price-to-Free-Cash-Flow Ratio was 1370.40. The lowest was 96.88. And the median was 359.81.

ASX:XRO's Price-to-Free-Cash-Flow is ranked worse than
87.42% of 1463 companies
in the Software industry
Industry Median: 22.69 vs ASX:XRO: 96.88

Xero's Free Cash Flow per Share for the six months ended in Sep. 2023 was A$0.64. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in was A$1.29.

During the past 3 years, the average Free Cash Flow per Share Growth Rate was 38.10% per year.

During the past 11 years, Xero's highest 3-Year average Free Cash Flow per Share Growth Rate was 38.10% per year. The lowest was -87.90% per year. And the median was -12.50% per year.


Xero Price-to-Free-Cash-Flow Historical Data

The historical data trend for Xero's Price-to-Free-Cash-Flow 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 Price-to-Free-Cash-Flow Chart

Xero Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Price-to-Free-Cash-Flow
Get a 7-Day Free Trial Premium Member Only Premium Member Only 434.38 236.62 302.70 1,370.00 118.28

Xero Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
Price-to-Free-Cash-Flow 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 - 1,370.00 - 118.28 -

Competitive Comparison of Xero's Price-to-Free-Cash-Flow

For the Software - Application subindustry, Xero's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow 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 Price-to-Free-Cash-Flow Distribution in the Software Industry

For the Software industry and Technology sector, Xero's Price-to-Free-Cash-Flow distribution charts can be found below:

* The bar in red indicates where Xero's Price-to-Free-Cash-Flow falls into.



Xero Price-to-Free-Cash-Flow Calculation

Xero's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/ Free Cash Flow per Share (TTM)
=125.36/1.294
=96.88

Xero's Share Price of today is A$125.36.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Xero's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Sep. 2023 was A$1.29.

* 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.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Xero  (ASX:XRO) Price-to-Free-Cash-Flow Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management's decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Xero Price-to-Free-Cash-Flow Related Terms

Thank you for viewing the detailed overview of Xero's Price-to-Free-Cash-Flow provided by GuruFocus.com. Please click on the following links to see related term pages.


Xero (ASX:XRO) Business Description

Industry
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 (ASX:XRO) Headlines

No Headlines