There is a group of wonderful ASX shares that have been among the best performers on the Australian stock market over the past decade.
However, the last few months have been painful for the share prices of many of these businesses. I think this is presenting a great opportunity to buy shares at a much lower price/earnings (P/E) ratio.
While these leading ASX growth shares still don't trade on an earnings multiple similar to Commonwealth Bank of Australia (ASX: CBA) after the declines, the businesses below have a lot more earnings potential and they continue to grow profit. I'd happily buy them with $3,000.
Pro Medicus Ltd (ASX: PME)
This business is arguably the best company on the ASX. It describes itself as a global provider of medical imaging solutions, including radiology imaging solutions (RIS) and picture archiving and communication systems (PACS).
The FY25 result was a perfect example of the businesses' impressive financials. Revenue rose 31.9% to $213 million, net profit after tax (NPAT) jumped 39.2% to $115.2 million and the final dividend per share was hiked by 37.5% to 30 cents per share.
A key enabler of the company's strong financials is an underlying operating profit (EBIT) margin of 74%, which is exceptionally high. This helps turn a sizeable majority of new revenue into operating profit.
The ASX share is winning new contracts with major customers in the northern hemisphere and it's also successfully selling additional modules to existing customers.
With the Pro Medicus share price down 35% since July, it looks like a good time to invest for the long-term. According to the forecast on Commsec, it's now trading at 85x FY28's estimated earnings.
TechnologyOne Ltd (ASX: TNE)
TechnologyOne is an ASX share I've put some of my own investing money into recently.
The company provides enterprise resource planning (ERP) software, with customers like local, state and federal government, companies, universities and other organisations.
This business is delivering consistent growth year after year. In FY25, the business delivered profit before tax (PBT) growth of 19% to $181.5 million, beating guidance of between 13% to 17%.
TechnologyOne has been successful at providing subscribers with software improvements, unlocking more revenue from them over the years. It's also winning new customers from competitors, such as the London boroughs of Islington London Borough Council and the Council of the Royal Borough of Greenwich. This is helping drive revenue.
The business reached annual recurring revenue (ARR) of $554.6 million in FY25 and it has a goal to reach $1 billion of ARR by FY30, which would help it become significantly more profitable.
According to the forecast on Commsec, the TechnologyOne share price is now valued at 39x FY28's estimated earnings. That's after a decline of 34% in the past six months.
Xero Ltd (ASX: XRO)
Xero is the leading cloud accounting provider in Australia and New Zealand. It also has built an impressive market share in markets like the UK, Singapore and South Africa.
The company now has 4.5 million subscribers from across the world, which has given the company significant scale advantages. With its gross profit margin of almost 90%, new revenue is rapidly boosting the ASX share's profit statistics.
In the first half of FY26, net profit surged 42% to NZ$135.8 million and free cash flow jumped 54% to NZ$321 million.
The Xero share price is down 43% in the past six months, which I think has been overdone. Tax reporting and digitalisation gives Xero pleasing earnings tailwinds for the years ahead.
According to the forecast from UBS, the Xero share price is now valued at just 37x FY28's estimated earnings following the heavy decline this year.
