What is the price-to-earnings ratio of Xero?
The price-earnings ratio of Xero is currently 12.94.
Xero P/S 2024
Xero P/S
12.94
Ticker
XRO.AX
ISIN
NZXROE0001S2
WKN
A1H4J8
As of Aug 23, 2024, Xero's P/S ratio stood at 12.94, a -2.04% change from the 13.21 P/S ratio recorded in the previous year.
The Xero P/S history
Xero Aktienanalyse
What does Xero do?
Xero Ltd is a company from New Zealand that was founded in 2006. The company offers a business software solution for cloud accounting, invoicing, order processing, and much more. The comprehensive offering from Xero allows companies and self-employed individuals of all sizes to easily manage their finances and accounting in one system. Xero was founded by Rod Drury and Hamish Edwards, who recognized the difficulties that small and medium-sized businesses face in effectively managing their finances. They wanted to develop an accounting software that was easy to use and fully available in the cloud. The company grew quickly and was able to raise significant funds through a series of investment rounds and share placements. Xero also opened an office in Canada in 2018 and has been steadily expanding its presence in North America since then. Currently, Xero has over 2 million subscribers in over 180 countries worldwide. The business model of Xero is based on a subscription software that customers pay for on a monthly basis. The company offers various pricing models, with monthly costs depending on the size of the company and the required features. Xero thus offers a scalable cloud software platform that can be used by small to larger companies. Xero also has an API integration and a comprehensive library of partner applications that run on the Xero cloud platform. Xero customers can connect their accounting functions with additional applications to automate and optimize their business. Xero offers a comprehensive suite of financial software solutions for small and medium-sized businesses in the areas of accounting, invoicing, and payment processing. Xero's core product is the accounting software, which allows companies to manage their finances from a single place. Xero's features include creating invoices, matching transactions, generating reports, and creating budget plans. With Xero, customers can create and send invoices electronically to clients. They can set payment periods to remind customers of overdue invoices. Xero also allows customers to accept payments directly online. Xero also offers payment solutions for businesses. Xero supports payment solutions such as PayPal, Stripe, Braintree, and many more. Xero offers a wide range of products that can streamline the accounting process for businesses. The products include accounting software, payroll software, invoicing and payment processing software, project management software, and tax software solutions. Xero offers a wide range of software solutions for businesses to optimize their financial management and automate accounting. The company has a rapidly growing global presence and is expected to be the leading cloud accounting software worldwide by user count, according to market researchers. Xero also offers a wide library of partner applications to meet the needs of its customers and optimize their businesses. Xero ist eines der beliebtesten Unternehmen auf Eulerpool.com.P/S Details
Decoding Xero's P/S Ratio
Xero's Price to Sales (P/S) Ratio is a crucial financial metric that measures the company's market valuation relative to its total sales revenue. It's calculated by dividing the company's market capitalization by its total sales over a specific period. A lower P/S ratio can indicate that the company is undervalued, while a higher ratio may suggest overvaluation.
Year-to-Year Comparison
Comparing Xero's P/S ratio yearly provides insights into how the market perceives the company’s value relative to its sales. An increasing ratio over time can indicate growing investor confidence, while a decreasing trend might reflect concerns about the company’s revenue generation capabilities or market conditions.
Impact on Investments
The P/S ratio is instrumental for investors evaluating Xero's stock. It offers insights into the company’s efficiency in generating sales and its market valuation. Investors use this ratio to compare similar companies within the same industry, aiding in selecting stocks that offer the best value for investment.
Interpreting P/S Ratio Fluctuations
Variations in Xero’s P/S ratio can result from changes in the stock price, sales revenue, or both. Understanding these fluctuations is crucial for investors to evaluate the company’s current valuation and future growth potential, aligning their investment strategies accordingly.
Frequently Asked Questions about Xero stock
How has the price-earnings ratio of Xero changed compared to last year?
The price-to-earnings ratio of Xero has increased by -2.04% fallen (meaning "decreased" or "dropped") compared to last year.
What consequences does a high price-earnings ratio have for investors?
A high price-to-earnings ratio indicates that the company's stock is relatively expensive and investors may potentially achieve a lower return.
What does a low price-earnings ratio mean?
A low price-earnings ratio means that the company's stock is relatively cheap and investors may potentially achieve a higher return.
Is the price-earnings ratio of Xero high compared to other companies?
Yes, the price-to-earnings ratio of Xero is high compared to other companies.
How does an increase in the price-earnings ratio of Xero affect the company?
An increase in the price-earnings ratio of Xero would lead to a higher market capitalization of the company, which in turn would lead to a higher valuation of the company.
How does a reduction in the price-to-earnings ratio of Xero affect the company?
A decrease in the price-earnings ratio of Xero would result in a lower market capitalization of the company, which in turn would lead to a lower valuation of the company.
What are some factors that influence the price-earnings ratio of Xero?
Some factors that influence the price-earnings ratio of Xero are the company's growth, financial position, industry development, and the overall economic situation.
How much dividend does Xero pay?
Over the past 12 months, Xero paid a dividend of . This corresponds to a dividend yield of about . For the coming 12 months, Xero is expected to pay a dividend of 0 NZD.
What is the dividend yield of Xero?
The current dividend yield of Xero is .
When does Xero pay dividends?
Xero pays a quarterly dividend. This is distributed in the months of .
How secure is the dividend of Xero?
Xero paid dividends every year for the past 0 years.
What is the dividend of Xero?
For the upcoming 12 months, dividends amounting to 0 NZD are expected. This corresponds to a dividend yield of 0 %.
In which sector is Xero located?
Xero is assigned to the 'Information technology' sector.
Wann musste ich die Aktien von Xero kaufen, um die vorherige Dividende zu erhalten?
To receive the latest dividend of Xero from 8/23/2024 amounting to 0 NZD, you needed to have the stock in your portfolio before the ex-date on 8/23/2024.
When did Xero pay the last dividend?
The last dividend was paid out on 8/23/2024.
What was the dividend of Xero in the year 2023?
In the year 2023, Xero distributed 0 NZD as dividends.
In which currency does Xero pay out the dividend?
The dividends of Xero are distributed in NZD.
Stock savings plans offer an attractive way for investors to build wealth over the long term. One of the main advantages is the so-called cost-average effect: by regularly investing a fixed amount in stocks or stock funds, you automatically buy more shares when prices are low, and fewer when they are high. This can lead to a more favorable average price per share over time. In addition, stock savings plans allow small investors access to expensive stocks, as they can participate with small amounts. Regular investment also promotes a disciplined investment strategy and helps to avoid emotional decisions, such as impulsive buying or selling. Furthermore, investors benefit from the potential appreciation of the stocks as well as from dividend distributions, which can be reinvested, enhancing the compounding effect and thus the growth of the invested capital.
Andere Kennzahlen von Xero
Our stock analysis for Xero Revenue stock includes important financial indicators such as revenue, profit, P/E ratio, P/S ratio, EBIT, as well as information on dividends. We also assess aspects such as stocks, market capitalization, debt, equity, and liabilities of Xero Revenue. If you are looking for more detailed information on these topics, we offer comprehensive analyses on our subpages.
