XRO share price in focus
Founded in 2006 in Wellington, New Zealand, by Rod Drury, Xero has grown into a global leader in cloud-based accounting software. Under Drury’s leadership until 2018 and under a new CEO since, the company has expanded to employ over 3,000 people and now serves millions of subscribers worldwide.
Xero’s “beautiful accounting software” is designed primarily for accountants and bookkeepers, enabling them to better serve small business clients. It offers real-time financial data accessible on any device, empowering small business owners and their advisors with up-to-date insights.
Xero’s core cloud accounting platform is widely used in New Zealand, Australia, the UK, and, to a lesser extent, the United States.
COH shares
Cochlear, established in 1981 in Sydney, is a leading medical device company specializing in hearing solutions. The company designs, manufactures, and distributes three types of hearing implants tailored to various medical needs.
As a global leader in hearing technology, Cochlear has delivered over 750,000 implantable devices and employs more than 5,000 people across 50+ countries.
Its mission is to enhance the quality of life for individuals living with hearing-related conditions.
XRO share price valuation
As a growth company, some of the trends we might investigate from XRO include revenue growth, profit growth, and return on equity (ROE). These measures can indicate the growth rates and prospects of the company, as well as their ability to generate returns from their assets.
Since 2021, XRO has grown revenue at a rate of 26.4% per year to reach $1,714m in FY24. Over the same stretch of time, net profit has increased from -$9m to $175m. XRO last reported a ROE of 14.3%.
Over the last 3 years, COH has increased revenue at a rate of 14.3% per year to hit $2,236m in FY24. Meanwhile, net profit has increased from $324m to $357m. COH’s last reported ROE was 19.9%.
Please keep in mind that context is important – these metrics give us some indication of company performance, but it’s just the start of valuing XRO or COH shares. To learn more about valuation, check out one of our free online investing courses.
