It looks very very expensive though for a company that is going to find growth much harder to come by though. It is a great company and product but at these levels it is very difficult to justify the growth multiple.
Growth is going to be so much harder to achieve. Growth numbers are skewed 60:40 to ANZ and RoW right now. ANZ has a total 2.1m subs versus a TAM of 3.5m for 58% market share. There can't be much grow left in ANZ from here (which is 60% of Xero's growth). That leaves Xero heavily reliant on RoW.
RoW growth is really not as exciting as ANZ. LTV in RoW ($2,542/sub) is 40% lower than ANZ ($4,374/sub) so it does not add as much value. Also the CAC seems off the charts in RoW with LTV/CAC of 3.1x versus the 14.0x in ANZ.
The quiet achiever, page-10
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Last
$136.12 |
Change
1.120(0.83%) |
Mkt cap ! $20.76B | |||
| Open | High | Low | Value | Volume |
| $133.89 | $136.55 | $133.59 | $9.018M | 66.68K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 9 | 60 | $136.12 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $136.14 | 12 | 3 |
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| Last trade - 14.12pm 10/07/2024 (20 minute delay) ? |
| XRO (ASX) Chart |