WTC share price in focus
Founded in 1994 by Richard White and Maree Isaacs, Wisetech Global is a developer of cloud-based software used for international and domestic logistics industries.
Wisetech’s vast suite of software products is used across various logistics functions including forwarding & customs, landside transport, rates & contracts, warehousing, and transport management systems.
Their cornerstone software is called Cargowise. It’s become an industry-leading solution now used by 24 out of 25 of the largest global freight forwarders and 46 of the top 50 third-party logistics providers.
CSL shares
CSL is a global biotechnology company that creates and delivers life-saving medicines, aiming to protect public health and improve the quality of life for those with life-threatening conditions.
The company operates through three main divisions: CSL Behring, CSL Seqirus, and CSL Vifor. Behring, acquired in 2004, focuses on manufacturing and distributing blood plasma products. Seqirus, formed from the rebranding of BioCSL and the acquisition of Novartis’ flu business in 2015, develops flu-related products and provides pandemic-related services to governments. Vifor specializes in products for iron deficiency and nephrology (renal/kidney care).
WTC & CSL share price valuation
As a growth company, one way to put a rough guesstimate on the WTC 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, WiseTech Global Ltd shares have a price-sales ratio of 14.15x, compared to its 5-year average of 31.86x, 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 WTC, 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 CSL is more of a ‘blue chip’ company, we could look at its dividend yield 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. CSL is paying a trailing dividend yield of around 3.17%, which compares to its 5-year average of 1.50%.
This is just one of many ways you could put a value on CSL 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 WTC or CSL.
