TCL share price in focus
Transurban, founded in 1999, manages and develops urban toll road networks in Australia, Canada and the United States.
Transurban has an interest in 22 urban motorways across its portfolio. Some of its notable motorways include the CityLink in Melbourne, Hills M2 in Sydney and the Logan Motorway in Brisbane.
Transurban invests heavily in the development of new projects which are paid back through collecting toll revenue from motor vehicles.
JHX shares
James Hardie Industries is a leading building solutions company and the world’s largest producer of fiber cement and gypsum products.
With operations spanning North America, Europe, Australia, and New Zealand, the company employs over 5,200 people.
TCL & JHX share price valuation
One way to have a ‘quick read’ of where the TCL share price is could be to study something like dividend yield over time. This can give us a sense of the stability of the company and whether they can consistently pay out a percentage of profits.
Remember, the dividend yield is basically the ‘cash flow’ to a shareholder, but it can fluctuate year-to-year or between payments. Currently, Transurban Group shares have a dividend yield of around 4.63%, compared to its 5-year average of 3.64%. In other words, TCL shares are trading higher than their historical average dividend yield. Be careful how you interpret this information though – it could mean that dividends are growing, or it could mean the share price is falling, or both. In the case of TCL, the annual report shows last year’s dividend was greater than the 3-year average, so the dividend has been growing.
Since JHX is more of a ‘growth’ company than an established blue chip, a price-sales ratio might be a more appropriate assessment. This ratio gives us an idea of how the company has historically been valued relative to its earnings, which can indicate if the company is over or undervalued today. The JHX share price currently trades at a price-sales ratio of 2.35x, which compares to its 5-year long-term average of 4.14x. So, JHX shares are trading lower than their historical average. Don’t forget, a simple multiple like this should only be the start of your research. The Rask websites offer free online investing courses, created by analysts explaining things like Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). They even include free valuation spreadsheets! It’s a good idea to use multiple valuation methods to value a share like James Hardie Industries plc.
