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
Previously a government body, CSL is today a publicly-listed global biotechnology company that develops and delivers innovative medicines that save lives, protect public health, and help people with life-threatening medical conditions live full lives.
The company is divided into three core business units: CSL Behring, CSL Seqirus and CSL Vifor. Behring, acquired in 2004, manufactures and distributes blood plasma products. Seqirus is responsible for making flu-related products and performs pandemic-related services for governments. Finally, Vifor makes products for iron deficiency and nephrology (renal/kidney care).
CSL has developed a strong reputation with Australian investors over many decades as being a reliable company and a consistent dividend payer. With the continual rise in healthcare costs and the consistent historical performance, interest in CSL shares remains high today.
WTC & CSL share price valuation
As a growth company, one way to put a broad projection 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 12.14x, 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 3.95%, 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.
