Xero Valuation
| XROLF Stock | USD 108.40 0.71 0.65% |
At this time, the company appears to be undervalued. Xero Limited maintains a prevalent Real Value of $121.12 per share. The last-minute price of the company is $108.4. Our model calculates the value of Xero Limited from examining the company fundamentals such as Profit Margin of (0.02) %, current valuation of 7.76 B, and Return On Asset of 0.0211 as well as analyzing its technical indicators and probability of bankruptcy.
Undervalued
Today
Please note that Xero's price fluctuation is very steady at this time. Calculation of the real value of Xero Limited is based on 3 months time horizon. Increasing Xero's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Xero pink sheet is determined by what a typical buyer is willing to pay for full or partial control of Xero Limited. Since Xero is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Xero Pink Sheet. However, Xero's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 108.4 | Real 121.12 | Hype 108.4 | Naive 106.1 |
The real value of Xero Pink Sheet, also known as its intrinsic value, is the underlying worth of Xero Limited Company, which is reflected in its stock price. It is based on Xero's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Xero's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Xero Limited helps investors to forecast how Xero pink sheet's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Xero more accurately as focusing exclusively on Xero's fundamentals will not take into account other important factors: Xero Total Value Analysis
Xero Limited is at this time expected to have takeover price of 7.76 B with market capitalization of 8.26 B, debt of 822.42 M, and cash on hands of 936.06 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Xero fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
7.76 B | 8.26 B | 822.42 M | 936.06 M |
Xero Investor Information
About 16.0% of the company outstanding shares are owned by insiders. The company has Price/Earnings (P/E) ratio of 250.59. Xero Limited recorded a loss per share of 0.04. The entity had not issued any dividends in recent years. Based on the analysis of Xero's profitability, liquidity, and operating efficiency, Xero Limited is not in a good financial situation at this time. It has a very high probability of going through financial hardship in January.Xero Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Xero has an asset utilization ratio of 46.81 percent. This implies that the Company is making $0.47 for each dollar of assets. An increasing asset utilization means that Xero Limited is more efficient with each dollar of assets it utilizes for everyday operations.Xero Ownership Allocation
Xero Limited retains a total of 151.68 Million outstanding shares. Xero Limited maintains significant amount of outstanding shares owned by insiders and institutional investors . Please note that no matter how many assets the company shows, if the real value of the company is less than the current market value, you may not be able to make money on it.Xero Profitability Analysis
The company reported the revenue of 1.02 B. Net Loss for the year was (9.11 M) with profit before overhead, payroll, taxes, and interest of 957.43 M.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Xero's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Xero and how it compares across the competition.
About Xero Valuation
The pink sheet valuation mechanism determines Xero's current worth on a weekly basis. Our valuation model uses a comparative analysis of Xero. We calculate exposure to Xero's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Xero's related companies.Xero Limited, together with its subsidiaries, operates as a software as a service company in New Zealand, Australia, the United Kingdom, and internationally. Xero Limited was incorporated in 2006 and is headquartered in Wellington, New Zealand. Xero is traded on OTC Exchange in the United States.
8 Steps to conduct Xero's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Xero's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Xero's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Xero's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Xero's revenue streams: Identify Xero's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Xero's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Xero's growth potential: Evaluate Xero's management, business model, and growth potential.
- Determine Xero's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Xero's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Xero Growth Indicators
Investing in growth stocks can be very risky. If the company such as Xero does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 150 M | |
| Quarterly Earnings Growth Y O Y | 24.274 | |
| Forward Price Earnings | 136.9863 | |
| Retained Earnings | -329.9 M |
Complementary Tools for Xero Pink Sheet analysis
When running Xero's price analysis, check to measure Xero's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Xero is operating at the current time. Most of Xero's value examination focuses on studying past and present price action to predict the probability of Xero's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Xero's price. Additionally, you may evaluate how the addition of Xero to your portfolios can decrease your overall portfolio volatility.
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