Xro - xero

[kizame]

All - rather than cluter up the xero thread why don't you take it to private messages.


Getting back to Xero:
Does anyone have any research/sources that contain generally accepted valuation methods for SAAS companies? I have been modelling xero and I can make assumptions for customer and ARPU growth but one thing I am struggling with is what is a reasonable multipleir for the resulting revenue.

Currently by my calculations xero is sitting on 15.5x ACMR

Cheers,
James

Can I make a suggestion and say, forget about trying to value the company and watch what is happening with xro's chart,use some basic TA to make any decisions you need to make about the co. The picture speaks to you.
After all,It's all about the share price right?

[BFG]

All - rather than cluter up the xero thread why don't you take it to private messages.


Getting back to Xero:
Does anyone have any research/sources that contain generally accepted valuation methods for SAAS companies? I have been modelling xero and I can make assumptions for customer and ARPU growth but one thing I am struggling with is what is a reasonable multipleir for the resulting revenue.

Currently by my calculations xero is sitting on 15.5x ACMR

Cheers,
James

Here's a good start point:

http://www.bullandbearwise.com/NASDAQ100RealPE.asp

And overall indices ratios:

http://online.wsj.com/mdc/public/page/2_3021-peyield.html

Wondering how those saying the market is "fairly valued" can say that with a straight face...

[gv1]

Just received an email from Z.......Now you can get a copy of your Z Card invoice data fed into Xero.

Maybe some comfort for holders that Rod is doing something.

[winner69]

All - rather than cluter up the xero thread why don't you take it to private messages.


Getting back to Xero:
Does anyone have any research/sources that contain generally accepted valuation methods for SAAS companies? I have been modelling xero and I can make assumptions for customer and ARPU growth but one thing I am struggling with is what is a reasonable multipleir for the resulting revenue.

Currently by my calculations xero is sitting on 15.5x ACMR

Cheers,
James

http://www.scalevp.com/a-valuation-f...saas-companies


http://kellblog.com/2013/06/05/what-...uation-growth/

As you can see, there’s basically no reward for profitability. *In real estate what matters is location, location, location. *In SaaS, it’s growth, growth, and growth.

[Harvey Specter]

7.Xero has executed THEIR plan flawlessly and so will be able to raise capital in the future their high value backers don't give a hoot about sp fluctuations specially that its corrected from ridiculous to reasonable.

Good post. This is the only one I disagree with. Their plan in the US has not gone flawlessly but they have been quick to realise this and make necessary changes. They are probably 2 years behind where their original plan was for the US. However, they identified this and increased their push into the UK market (much simpler as doesn't have 50 different state taxes) to compensate. The risk is the 2 year delay in the US has given Intuit time to spot the risk and take action.

[Harvey Specter]

Does anyone have any research/sources that contain generally accepted valuation methods for SAAS companies? I have been modelling xero and I can make assumptions for customer and ARPU growth but one thing I am struggling with is what is a reasonable multipleir for the resulting revenue.

Currently by my calculations xero is sitting on 15.5x ACMR

There were alot of articles linked in one thread but it was taken down when Sparky when Nuclear (since he started the thread - very F'n annoying). There is a big range 5-20 depending on stage of growth is reasonable.

Here's a start but it really needs a third dimension with growth rate: http://clarecapital.co.nz/right-evrevenue-multiple/

Can I make a suggestion and say, forget about trying to value the company and watch what is happening with xro's chart,use some basic TA to make any decisions you need to make about the co. The picture speaks to you.
After all,It's all about the share price right?

No harm putting a price on it, and then look to TA to find an entry point. The lower it goes compare to your target price, the better bargain it is.

I note the lowest of the broker targets I have seen is Woodwards at $15.20. All the others are above last nights closing.

[skid]

Markets have calmed and tech stocks up(in the US)--If Xro cant bounce today,Id be having a serious think

disc.-Not holding but finding it an interesting share to watch--When I fist looked at it it was $40 and my faith doesnt extent to those heights for any share on the NZX

[bull....]

could hit support 15 today see what happens if when breaks target 11

[False Profit]

..and then there's the buys in at $3.50 cps... Forgive people their dreams...

[tosspot]

I may buy once it goes under a billion mcap, over that no thank you, not worth the risk. see you at $8