HUB share price in focus
HUB24 is a leading player in the wealth management software industry, offering diversified solutions across financial advice, superannuation, and investment management.
HUB24’s three main products are its platforms HUB24, Class, and myprosperity. The HUB24 platform is designed for financial advisers and their clients, providing access to a range of managed funds and investment products. Class is a leading software for self-managed super funds to manage portfolios, legal documentation, and compliance. myprosperity is focused on accountants and advisers, enabling them to provide an enhanced service and customer experience.
HUB24’s competitive advantage is in the quality of its service. In 2024 they were awarded Overall Best Platform in the Adviser Ratings Financial Advice Landscape Report, and ranked first for Overall Satisfaction and Brand Image and Reputation in the 2024 Wealth Insights Platform Service Level Report.
ZIP shares
Zip Co is a ‘fintech’ company founded in 2013. It offers a buy-now-pay-later (BNPL) service that is popular among retail consumers.
Zip’s platform allows customers to purchase items immediately and repay them over several interest-free instalments.
Like most BNPL companies, Zip makes money through transaction fees paid by the business, as well as late fees charged to customers who miss payments.
HUB & ZIP share price valuation
As a growth company, one way to put a broad projection on the HUB 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, Hub24 Ltd shares have a price-sales ratio of 20.42x, compared to its 5-year average of 13.32x, meaning its shares are trading above their historical average. This could mean that the share price has increased, or that sales have declined, or both. In the case of HUB, 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.
The ZIP share price currently trades at a price-sales ratio of 3.64x, which compares to its 5-year long-term average of 5.81x. So, ZIP 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 Zip Co Ltd.
