Xero (ASX:XRO) Growth Rank: 10 (As of Jul. 22, 2026) — 11% Above Median

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$67.85
GF Value A$199.74
Valuation Possible Value Trap
! 7 Warning Signs
View Full Analysis

What is Xero Growth Rank?

Xero ASX:XRO -2.61% 74 Growth Rank is 10 as of Jul. 22, 2026, which is 11% above its 10-year median of 9.00. GuruFocus rates ASX:XRO with a GF Score™ of 74/100 and a GF Value™ of A$199.74 (Possible Value Trap). The stock has 7 warning signs investors should review.

Xero has the Growth Rank of 10.

GuruFocus Growth Rank measures the growth of a company in terms of its revenue and profitability, rated on a scale from 1 to 10. Historically, the companies with the highest growth ranks performed the best over the long term. It is calculated using the following criteria:

1. 5-year revenue growth rate, the higher, the better.
2. 3-year revenue growth rate, the higher, the better.
3. 5-year EBITDA growth rate, the higher, the better.
4. The predictability of 5-year revenue. The most consistent it is, the higher the rank.

A higher score reflects a greater ability to drive business growth, with companies considered to have strong and sustainable expansion potential. Conversely, a lower score indicates challenges in achieving consistent growth and scalability.

GuruFocus found that the Growth Rank is the second of the two most-sensitive parameters among the five parameters checked. Please click GF Score to see more details on GF Score's 5 Key Aspects of Analysis.

Please note that we are using the five-year EBITDA growth rate as a parameter, so the company needs to have had positive growth over that time. The reason we use EBITDA instead of earnings per share is that with EBITDA, we can rank a lot more companies since a company may have positive EBITDA but negative EPS. Since we are looking at the growth here, EBITDA gives us a pretty clear picture about the growth in the company's business operations.

ASX:XRO vs UBER, SHOP, CRM: Growth Rank Comparison

For the Software - Application subindustry, Xero's Growth Rank, along with its competitors' market caps and Growth Rank 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 Growth Rank vs Software Industry

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

* The bar in red indicates where Xero's Growth Rank falls into.


ASX:XRO
74GF Score
Xero Ltd ASX:XRO
Growth Rank is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis
Frequently Asked Questions Learn more about Growth Rank →
What does a Growth Rank of 10 mean?
Xero (ASX:XRO) has a Growth Rank of 10 as of Jul. 22, 2026. Growth Rank measures the growth of a company in terms of its revenue and profitability. View historical data on Xero and its competitors. This is 11% above median its historical median of 9.00. Over the past decade, Xero's Growth Rank has ranged from 5.00 to 10.00.
Is Xero's Growth Rank too high?
Xero's current Growth Rank of 10 is 11% above median its 10-year median of 9.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 10.00. 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 Growth Rank compare to UBER and SHOP?
Xero's Growth Rank of 10 can be compared against companies in the Software industry. Historically, Xero's own Growth Rank has ranged from 5.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Growth Rank for a Software company?
A good Growth Rank depends on the Software industry context. However, Growth Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Growth Rank mean?
A high Growth Rank can signal that a stock is expensive relative to its fundamentals. Growth Rank measures the growth of a company in terms of its revenue and profitability. View historical data on Xero and its competitors. Xero's current Growth Rank is 10, which is 11% above median its own 10-year median of 9.00. 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$199.74, compared to a current price of A$67.85 — trading 66% below its estimated fair value. The current Growth Rank is 10, which is 11% above median its 10-year median of 9.00. 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 Growth Rank calculated?
Growth Rank is calculated from a company's financial statements. For Xero (ASX:XRO), the current Growth Rank is 10 as of Jul. 22, 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$67.85 is trading 66% below its estimated GF Value™ of A$199.74. GuruFocus considers Xero to be Possible Value Trap.

Key valuation signals for ASX:XRO:

  • Growth Rank: 10 (11% above median its 10-year median of 9.00)
  • GF Value™: A$199.74 vs. price of A$67.85 (66% 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

Growth Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$67.85
Price
A$199.74
GF Value