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CSL and Woolworths Group Ltd: 2 ASX shares to dig into

The CSL Limited (ASX:CSL) share price has decreased 8.7% since the start of the 2023. It's probably worth asking, 'is the CSL share price good value?'
The CSL Limited (ASX:CSL) share price has decreased 8.7% since the start of the 2023. The Woolworths Group Ltd (ASX:WOW) share price is tracking 15% off its 52-week lows.

CSL share price

CSL is a 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 main business units: CSL Behring, CSL Seqirus and CSL Vifor. Behring, acquired in 2004, manufactures and distributes blood plasma products. Seqirus was formed by a rebranding of BioCSL and the acquired Novartis flu business (bought in 2015) makes flu-related products and performs pandemic-related services for Governments. Finally, Vifor makes products for iron deficiency and nephrology (renal/kidney care).

As previously mentioned, CSL’s plasma collection unit creates life-saving treatments for those will serious illnesses globally. CSL relies on plasma and blood collections to perform its primary businesses; and acquisitions are increasingly part of the CSL business. Investors often use CSL as an indirect play on rising spending on healthcare.

WOW share price

Founded in 1924, Woolworths is a retail operator in Australia and New Zealand with over 3,000 stores and over 100,000 employees. It is currently the Australia’s largest company in terms of revenue and market share.

Woolworths’ main operations include supermarkets (under the Woolworths brand in Australia and Countdown in New Zealand), retailing through its discount department stores under the Big W brand, and business-to-business (B2B) brands like PFD. Overwhelmingly, it’s 35%+ share of Australian supermarkets is its crown jewel.

Share price valuation

One way to have a ‘quick read’ of where the CSL share price is, is to study something like dividend yield thru time. Remember, the dividend yield is effectively the ‘cash flow’ to a share holder, but it can be influenced by yearly or bi-yearly fluctuations. Currently, CSL Limited shares have a dividend yield of around 1.41%, which compares to its 5-year average of 1.24%. Put simply, CSL shares are trading below their historical average dividend yield.

Since it is a more mature-style business, the WOW share price is offering a historical dividend yield of around 3.02%, which compares to its 5-year average of 2.66%. The Rask websites, especially our Rask Education platform, offer free tutorials explaining Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). Both of these models would be a better way to value the WOW share price.

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