NWL share price in focus
Founded in 1999, Netwealth is a wealth management business that provides a platform for financial planners to manage client money.
As of 2024, Netwealth has over 140,000 account holders on its platform and over $88 billion of funds under administration (FUA).
Netwealth’s big advantage is its scale and the user-friendly interface which can be accessed through its online platform. Through one simple dashboard, users can buy and sell investments, track performance, and view charts, reports and tax statements.
XRO shares
Xero was founded in 2006 in Wellington, New Zealand, by Rod Drury, who led the company until 2018. Employing more than 3,000 people, Xero helps millions of subscribers manage their accounting and tax obligations across the globe.
The cloud-based “beautiful accounting software” developed by Xero is primarily for accountants and bookkeepers to better service their small business customers.
Through Xero, small business owners and their advisors/accountants have access to real-time financial data and on any device. Xero provides its core cloud accounting software to customers in New Zealand, Australia, the UK and, to a lesser extent, the USA.
NWL share price valuation
As a growth company, one way to put a broad projection on the NWL share price could be to compare its price-to-sales multiple over time. Currently, Netwealth Group Ltd shares have a price-sales ratio of 23.77x, compared to its 5-year average of 23.72x, meaning its shares are trading higher than their historical average. This could mean that the share price has increased, or that sales have declined, or both. In the case of NWL, revenue has been growing over the last 3 years. Please keep in mind that context is important – and this is just one valuation technique. Investment decisions can’t just be based on one metric.
The XRO share price currently trades at a price-sales ratio of 14.13x, which compares to its 5-year long-term average of 18.65x. So, XRO shares are trading below their historical average. However, 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! Just remember there are many different ways to value a share, like Xero Ltd.
