SHL share price in focus
Sonic Healthcare was listed in April 1987. It is now one of the world’s biggest pathology businesses with operations in Australia, New Zealand, Europe and North America.
It offers a number of different services including laboratory medicine, pathology, diagnostic imaging, radiology, general practice medicine and corporate medical services.
Sonic Healthcare looks to act in the best interests of its doctors and their patients. It aims to provide medical excellence as well as being a highly desirable place to work.
BXB shares
Brambles operates the world’s largest pool of reusable pallets, crates, and containers, providing essential support to global supply chains.
The company is best known for its CHEP brand, which operates across the Asia-Pacific, Americas, and Europe, Middle East, and Africa (EMEA) regions.
Brambles generates revenue through a hiring model: manufacturers use CHEP pallets to transport products to retailers, who then return the pallets to CHEP or pass them on to others within the supply chain. At each stage, Brambles earns daily hire fees for its pallets and crates.
SHL share price valuation
As a growth company, one way to put a broad estimate on the SHL share price could be to compare its price-to-sales multiple over time. This can tell us how the company has historically been valued relative to its total revenue.
Currently, Sonic Healthcare Ltd shares have a price-sales ratio of 1.48x, compared to its 5-year average of 1.94x, meaning its shares are trading lower than their historical average. This could mean that the share price has fallen, or sales have increased, or both. In the case of SHL, revenue has been growing over the last 3 years. Of course, context is important – and this is just one valuation technique. Investment decisions can’t just be based on one metric, but this can be a rough starting point.
Since it is a more of a ‘blue chip’ company, we could look at the dividend yield of BXB to determine its value. If we compare it to the historical dividend yield, we can get a sense of the stability of the company and its ability to pay out income. BXB is offering a trailing dividend yield of around 2.61%, which compares to its 5-year average of 2.66%. This is just one of many ways you could put a value on BXB shares. The Rask websites offer free online investing courses, created by analysts explaining valuation methods like Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). They even include free valuation spreadsheets which can help you learn how to value a company like SHL or BXB.
