Xero (ASX:XRO) Price-to-Tangible-Book: (As of Sep. 22, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
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.

ASX:XRO Xero Ltd ASX:XRO
74 GF Score
Price A$61.05
GF Value A$205.08
Valuation Possible Value Trap
! 7 Warning Signs
View Full Analysis

What is Xero Price-to-Tangible-Book?

As of today (2026-09-22), Xero's share price is A$61.05. Xero's Tangible Book per Share of Mar. 2026 for the quarter that ended in Mar. 2026 was A$-2.52. Hence, Xero's Price to Tangible Book Ratio of today is .

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

During the past 13 years, Xero's highest Price to Tangible Book Ratio was 221.44. The lowest was 25.74. And the median was 77.25.

ASX:XRO's Price-to-Tangible-Book is not ranked *
in the Software industry.
Industry Median: 3.37
* Ranked among companies with meaningful Price-to-Tangible-Book only.

A closely related ratio is called PB Ratio. As of today, Xero's share price is A$61.05. Xero's Book Value per Sharefor the quarter that ended in Mar. 2026 was A$26.39. Hence, Xero's P/B Ratio of today is 2.31.

Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The Price-to-Book Ratio does not work well for these companies. Some companies even have negative equity, so the Price-to-Book Ratio cannot be applied to them.

Xero Price-to-Tangible-Book Related Terms

Xero Price-to-Tangible-Book Historical Data

* Premium members only.

The historical data trend for Xero's Price-to-Tangible-Book 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.

Xero Price-to-Tangible-Book Chart

Xero Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Price-to-Tangible-Book
Get a 7-Day Free Trial Premium Member Only Premium Member Only 222.40 159.11 54.17 25.73 -

Xero Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Price-to-Tangible-Book 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 54.17 28.73 25.73 9.00 -

ASX:XRO vs CRM, SHOP, UBER: Price-to-Tangible-Book Comparison

For the Software - Application subindustry, Xero's Price-to-Tangible-Book, along with its competitors' market caps and Price-to-Tangible-Book 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 Price-to-Tangible-Book vs Software Industry

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

* The bar in red indicates where Xero's Price-to-Tangible-Book falls into.


ASX:XRO
74GF Score
Xero Ltd ASX:XRO
Price-to-Tangible-Book is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Xero Price-to-Tangible-Book Calculation

Xero's price-to-tangible-book ratio for today is calculated as:

Price to Tangible Book=Share Price/Tangible Book per Share (Q: Mar. 2026 )
=61.05/-2.519
=

* 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 Tangible Book=Market Cap/Tangible Equity
=Market Cap/(Total Stockholders Equity-Preferred Stock-Intangible Assets)

A closely related ratio is called PB Ratio. The difference between Price-to-Tangible-Book Ratio and PB Ratio is that book value other than intangibles are used in the calculation.

Is Xero (ASX:XRO) Overvalued in 2026?

Based on GuruFocus' analysis, Xero stock appears to be undervalued. The current stock price of A$61.05 is trading 70.2% below its estimated GF Value™ of A$205.08. GuruFocus considers Xero to be Possible Value Trap.

Key valuation signals for ASX:XRO:

  • Price-to-Tangible-Book:
  • GF Value™: A$205.08 vs. price of A$61.05 (70.2% below fair value)
  • GF Score™: 74/100 with 7 warning signs

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 Business Description

Other Exchanges XROLF:USA0XE:Germany
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 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

Price-to-Tangible-Book is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$61.05
Price
A$205.08
GF Value