Xero Valuation Multiples

Xero Overview

About Xero

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 and the United States.

Founded

2006

HQ

Employees

4.6K

Website

xero.com

Sectors

Financial Management SoftwareB2B SaaSHorizontal SaaSFinTech

Financials (LTM)

Revenue: $2B

EBITDA: $427M

EV

$7B

Valuation Multiples

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Xero Financials

Xero reported last 12-month revenue of $2B and EBITDA of $427M.

In the same LTM period, Xero generated $1B in gross profit, $427M in EBITDA, and $139M in net income.

Xero P&L

In the most recent fiscal year, Xero reported revenue of $1B and EBITDA of $482M.

Xero expects next 12-month revenue of XXX and NTM EBITDA of XXX

Xero Stock Performance

Xero has current market cap of $9B, and enterprise value of $7B.

Xero's stock price is $51.23.

Xero Valuation Multiples

Xero trades at 4.3x EV/Revenue multiple, and 15.9x EV/EBITDA.

Xero Financial Valuation Multiples

As of April 9, 2026, Xero has market cap of $9B and EV of $7B.

Equity research analysts estimate Xero's 2025E EV/Revenue multiple at XXX and 2025E EV/EBITDA multiple at XXX

Xero has a P/E ratio of 63.8x.

Xero Margins & Growth Rates

Xero's revenue in the last 12 month grew by 31%.

Xero's revenue per employee in the last FY averaged $0.3M, while opex per employee averaged $0.2M for the same period.

Xero's rule of 40 is 54% (metric relevant for SaaS companies only, counted as combined revenue growth rate and EBITDA margin).

Xero's rule of X is 96% (created by Bessemer, rule of X is another metric to measure SaaS companies, ~1.5x stronger vs. the traditional Rule of 40, counted as revenue growth rate multiplied by 2.5 plus EBITDA margin).

Xero Public Comps

See public comps and valuation multiples for other Financial Management Software comps.

Xero M&A Activity

Xero acquired XXX companies to date.

Last acquisition by Xero was on XXXXXXXX, XXXXX. Xero acquired XXXXXXXX for XXX (EV/Revenue multiple of XXX).

Xero Investment Activity

Xero invested in XXX companies to date.

Xero made its latest investment on XXXXXXXX, XXXXX. Xero invested in XXXXXXXX for XXX (EV/Revenue multiple of XXX).