not really. Depends how you value SaaS companies. They're...

not really. Depends how you value SaaS companies.

They're adding around $1b of lifetime value per year and growing around 20%. (And even though they churn all profits back into the business, they still make one).

So if you use P/E then yes, you have a point. But as with Amazon, Google, Facebook etc etc P/E is not a metric that the market currently uses to value them. As the CE has said if they wanted to they could swim to the side of the pool, and make an impressive profit with their 85+% margin, but why would you when there are so many customers to convert.

I agree $500 seems out there, but then I bought in at .80c and all along the way there have been people who have doubted the valuation, yet up it goes and every 6 months the story stays the same.

If you want to know whether the company has confidence, check out the Xero jobs page. Having followed them for years it appears they are going through a massive transformation in 2021- this company won't look the same in 12 months: more acquisitions coming, new markets, Covid-generated disruption playing into their hands. I wouldn't be surprised if it doubled/tripled/quadrupled in the 24-48 months. Equally, a drop below $100 is possible as the global markets go through turmoil. Either way, it's a long term hold and given relatively small number of SOI and loyal long-term holders, the amount of shares traded is pretty low- large movements up and down can happen pretty easily.