Xero Limited's (ASX:XRO) Intrinsic Value May Be 22% Lower Than Its Current Share Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 05 2025
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Source: Yahoo Finance
Xero's Valuation: Xero's estimated fair value is AU$123, indicating it is currently 27% overvalued at a share price of AU$157, with an analyst price target of NZ$195, which is 59% above the fair value estimate.
Discounted Cash Flow Analysis: The intrinsic value of Xero was estimated using a Discounted Cash Flow (DCF) model, projecting future cash flows and discounting them to present value, resulting in a total equity value of NZ$23 billion.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
