ASX200 Healthcare & Tech Update: Why SHL and XRO Shares Are Drawing Interest in 2025

June 27, 2025 12:48 PM AEST | By Team Kalkine Media

ASX200 Healthcare & Tech Update: Why SHL and XRO Shares Are Drawing Interest in 2025 — Image source: Shutterstock

Sonic Healthcare Ltd (ASX:SHL) Share Trends in 2025

Since the beginning of 2025, shares of Sonic Healthcare have dipped around 1.9%. Founded in 1987, the company has evolved into one of the largest global pathology and diagnostic service providers. Its operations span Australia, New Zealand, Europe, and North America.

The business delivers a diverse suite of medical services, including pathology, diagnostic imaging, radiology, general practice, and corporate healthcare solutions. With a focus on medical excellence and long-term partnerships with medical professionals, SHL aims to provide sustainable, patient-centric care through advanced diagnostics.

When it comes to valuation, SHL shares currently trade at a price-to-sales (P/S) ratio of 1.44x. This is noticeably below the company’s 5-year average of 1.94x. While such a metric on its own doesn’t tell the full story, it suggests a valuation below historical norms. This may reflect either a price decline, an uptick in revenue, or a combination of both. Notably, Sonic Healthcare has maintained revenue growth over the last three years, adding weight to the potential undervaluation narrative.

Xero Ltd (ASX:XRO) Making Digital Accounting Global

On the other hand, Xero shares have demonstrated resilience in 2025, trading 45.3% above their 52-week low. Founded in New Zealand in 2006, Xero has emerged as a global leader in cloud-based accounting platforms. Its software ecosystem is widely used across New Zealand, Australia, the UK, and gradually expanding in the US.

Xero’s offerings enable accountants and bookkeepers to better support small businesses with real-time data access and financial insights available across devices. With over 3,000 employees and millions of users worldwide, the company continues scaling operations while maintaining its design-forward approach to financial tools.

Currently, the XRO share price reflects a P/S ratio of 18.06x, which is slightly lower than its 5-year average of 18.65x. This suggests that, like SHL, XRO may be trading below its historical valuation multiple, even after significant recent gains.

Both Sonic Healthcare and Xero present unique sectoral strengths—healthcare diagnostics and digital finance—and their relative valuations in 2025 suggest renewed attention from those monitoring ASX 200 constituents.

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