QAN share price in focus
Qantas was founded in 1921 and is Australia’s largest airline operator by fleet size, number of international flights, and number of destinations.
It’s involved in the operation of domestic and international flights, freight services and the management of its frequent flyer loyalty program.
Qantas also owns Jetstar meaning they have significant pricing and market power in the highly concentrated Australian market.
PME shares
Founded in 1983, Pro Medicus is a provider of radiology IT software for hospitals, imaging centres and health care groups worldwide.
The Pro Medicus suite of products centre around radiology information systems (RIS), Picture Archiving and Communication Systems (PACS), and advanced visualisation solutions. These products support everything from patient scheduling and billing to fast medical imaging interpretations and analysis.
The company’s value proposition partly lies within its flagship Visage software which allows radiologists to view large image files generated by X-rays remotely on mobile devices. This allows diagnostic decisions to be made on-the-go and ideally improves patient outcomes.
QAN share price valuation
One way to have a ‘quick read’ of where the QAN share price is could be to study something like dividend yield through time. Remember, the dividend yield is effectively the ‘cash flow’ to a shareholder, but it can fluctuate year-to-year or between payments. Currently, Qantas Airways Limited shares have a dividend yield of around 0.00%, compared to its 5-year average of 1.22%. Put simply, QAN shares are trading below their historical average dividend yield. Be careful how you interpret this information though – it could mean that dividends have fallen, or that the share price is increasing, or both. In the case of QAN, last year’s dividend was less than the 3-year average, so the dividend has been falling.
Since PME is more of a growth company than an established blue chip, a price-sales ratio might be a more appropriate assessment. The PME share price currently trades at a price-sales ratio of 127.92x, which compares to its 5-year long-term average of 82.69x. So, its shares are trading higher than 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 Pro Medicus Limited.
