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How to value a company: XERO (ASX: XRO) Pt. 2

Equity Mates Investing Podcast

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How Much Is Your Average Revenue Per User?

When zero publishes its number for what it earns per user, average revenue per user, that's based on the last month. So if you look at this financial statement at the end of the year and there's that number in there, that won't match up with your income statement. And so when you model a hypergrowth company, you cannot use a three to five year model because they just go into infinity. That's where you'll see a lot of this price inflection. The best modelers are right about more of their assumptions and they're wrong.

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