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How to buy Xero (XRO) shares in Australia

Learn how to easily invest in Xero shares.

Xero
AU: XRO-AUD
About an hour ago

A$145.69

-A$0.74 (-0.51%)
Xero Limited (XRO) is a software-as-a-service company for small businesses around the world. Its products include accounting and bookkeeping software such as Xero HQ, Xero Cashbook, Xero Ledger and Xero tax tools. Created in 2006, Xero is headquartered in New Zealand but trades on the ASX.

How to buy shares in Xero

To buy shares listed in Australia such as Xero, you'll need to sign up to a broker with access to the ASX. Our table can help you compare share trading platforms and choose or you can see our list of the best share trading platforms in Australia. Then follow these steps.

  1. Open and fund your brokerage account.
    Complete an application with your personal and financial details, including your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
  2. Search for Xero.
    Find the share by name or ticker symbol: XRO. Research its history to confirm it's a solid investment against your financial goals.
  3. Purchase now or later.
    Buy today with a market order or use a limit order to delay your purchase until Xero reaches your desired price. Look into dollar-cost averaging to spread out your risk, which smooths out buying at consistent intervals and amounts.
  4. Decide on how many to buy.
    At today's price, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
  5. Check on your investment.
    Congratulations, you own a part of Xero. Optimise your portfolio by tracking how your stock and the business performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that affect your stock.

Xero stock price (ASX:XRO)

Use our graph to track the performance of XRO stocks over time.
N/A

Where to buy Xero shares

The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.
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Is it a good time to buy Xero stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Xero price performance over time

Historical closes compared with the last close of A$146.43

1 week (2024-09-26) -0.72%
1 month (2024-09-03) 1.20%
3 months (2024-07-03) 7.77%
6 months (2024-04-03) 17.13%
1 year (2023-10-03) 31.19%
2 years (2022-10-03) 104.80%
3 years (2021-10-01) 4.30%
5 years (2019-10-03) 142.47%

Is Xero under- or over-valued?

Valuing Xero stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Xero's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Xero's P/E ratio

Xero's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 143x. In other words, Xero shares trade at around 143x recent earnings.

That's relatively high compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Xero's EBITDA

Xero's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $272.3 million (£142 million).

The EBITDA is a measure of a Xero's overall financial performance and is widely used to measure stock profitability.

Xero financials

Revenue TTM $1.7 billion
Operating margin TTM 20.69%
Gross profit TTM $957.4 million
Return on assets TTM 5.94%
Return on equity TTM 14.28%
Profit margin 10.19%
Book value 9.146
Market capitalisation $22.7 billion

TTM: trailing 12 months

N/A

Xero share dividends

We're not expecting Xero to pay a dividend over the next 12 months.

Xero share price volatility

Over the last 12 months, Xero's shares have ranged in value from as little as $96.58 up to $152.41. A popular way to gauge a stock's volatility is its "beta".

XRO.AU volatility(beta: 1.02)Avg. volatility(beta: 1.00)LowHigh

Beta measures a share's volatility in relation to the market. The market (AU average) beta is 1, while Xero's is 1.024. This would suggest that Xero's shares are a little bit more volatile than the average for this exchange and represent, relatively speaking, a slightly higher risk (but potentially also market-beating returns).

Xero overview

Xero Limited, together with its subsidiaries, a software as a service company, provides online business solutions for small businesses and their advisors in Australia, New Zealand, and internationally. It offers Xero, an open platform that connects small businesses to a range of solutions, which helps to manage their finances. The company also provides Xero mobile app; and accountant/bookkeeper tools, including Xero HQ, Xero Practice Manager, Xero Workpapers, and Xero Cashbook or Xero Ledger. Xero Limited was incorporated in 2006 and is headquartered in Wellington, New Zealand.

Past developments

09 February 2023: Xero announces partmership with Stripe as it looks to expand its interagration aimed at supporting small businesses manage cash flows.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs comes with a higher risk of losing money rapidly due to leverage. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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