Morningstar: Xero still expensive despite fair value upgrade

Narrow-moat Xero closed Tuesday at $117.32, a 135 per cent premium on the fair value estimate. The firm has a price / earnings ratio of 555.56. Its wide-moat US competitor Intuit closed US$417.43, a 33 per cent premium on the FVE of US$310. Shares in Xero fell 13 per cent last …

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$117.32
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Morningstar: Xero Still Expensive Despite Fair Value Upgrade

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Xero Earnings: Price Hikes Deliver A Strong Result, But

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Nov 14, 2024 · We raise our fair value estimate for narrow-moat Xero by 6% to AUD 90 per share following first-half fiscal 2025 results. The company saw an acceleration in revenue growth to …

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Xero Demonstrates Improved Cost Discipline - Morningstar

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Mar 10, 2023 · We increase narrow-moat Xero’s XRO fair value estimate by 11% to AUD 60 per share with its new plan to reduce costs and focus on disciplined growth. Our fair value …

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$25.50
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Commitment To Growth Boosts Xero's Fair Value

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Morningstar has increased its fair value estimate for narrow-moat rated cloud accounting software company Xero by 6 per cent to $25.50 on the back of its pledge to boost revenue.

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$92.36
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Is Xero Limited (ASX:XRO) Expensive For A Reason? A Look At Its ...

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Sep 5, 2023 · Key Insights Using the 2 Stage Free Cash Flow to Equity, Xero fair value estimate is AU$92.36 Xero's AU$124 share price...

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5 Stocks With The Largest Fair Value Estimate Cuts ... - Morningstar

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Sep 5, 2024 · Burberry is trading at an overall 51% discount to Morningstar's fair value estimate and has a Morningstar Rating of 5 stars. ... equity research analyst at Morningstar. "Despite …

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Xero: Fair Value Estimate Raised 14% To AUD 75 On ... - Morningstar

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Jun 16, 2023 · We raise our fair value estimate for Xero by 14% to AUD 75 per share following a transfer of coverage to a new analyst. We maintain our narrow moat rating for Xero but add …

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Xero Shares Remain Under Valued As Strong Revenue Growth …

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Mar 14, 2017 · We continue to believe narrow moat-rated Xero is undervalued, with the current share price of NZD 18.60 11% below our fair value estimate of NZD...

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21 hours ago · Our SGD 2.90 fair value estimate implies a dividend yield of 5.3% in 2025. We assume a cost of equity of 7.5% and a cost of debt of 5.8%, leading to a weighted average …

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FAQs about Morningstar: Xero still expensive despite fair value upgrade Coupon?

How much is Xero worth?

Our fair value estimate for Xero is AUD 90 per share, implying a price/earnings ratio of 67 and an enterprise value/EBITDA multiple of 25 on our fiscal 2025 estimates. We assume revenue grows at a CAGR of 10% over the next decade, primarily driven by subscriber growth in international businesses. ...

Are Xero shares overvalued?

His upgrade was primarily driven by lower-than-expected churn in Xero’s international segment which may hint at a maturing customer base. Despite the increase in fair value Xero shares remain materially overvalued as share are currently trading at just over $100. Van Keulen views Xero as a marketing-led company, as opposed to a product-led company. ...

Is Xero limited (XRO) expensive?

A Look At Its Intrinsic Value Is Xero Limited (ASX:XRO) Expensive For A Reason? A Look At Its Intrinsic Value Using the 2 Stage Free Cash Flow to Equity, Xero fair value estimate is AU$92.36 Xero's AU$124 share price signals that it might be 35% overvalued Analyst price target for XRO is NZ$115, which is 25% above our fair value estimate ...

How did the market react to Xero's latest earnings report?

The market reacted negatively to the most recent earnings report. Morningstar equity analyst Roy Van Keulen raised his fair value estimate on narrow-moat Xero ( ASX: XRO) following interim fiscal 2024 results. Following the results shares plunged over 12%. Van Keulen raised his fair value estimate by 4% to $78. ...

Does Xero have a market share?

We estimate Xero has achieved around 20% market share since its entry into the UK, at the expense of incumbent Sage, which did not have a cloud-based product at the time of Xero’s entry into the market and has struggled to transition its on-premises license-based businesses to a cloud-based subscription model. ...

Why does Xero have a low customer acquisition cost?

This is a result of normalizing customer churn rates, lower business creation levels and increasing customer acquisition costs in geographies where Xero lacks a competitive advantage. Subscriber growth was in line with his expectations and reflects Van Keulen’s thesis of the importance of network effects to lower customer acquisition costs. ...