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 fowarding & 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 all 25 of the largest global freight forwarders and 46 of the top 50 third-party logistics providers.
XRO shares
Xero founder Rod Drury started the company in 2006 in Wellington, New Zealand. He led the company until 2018 and remained on the board until 2023. Today, Xero helps millions of people and businesses manage their accounting and tax obligations across the globe.
The cloud-based 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 have access to real-time financial data on any device. Xero provides its core cloud accounting software to customers in New Zealand, Australia, the UK and, over the last few years has been working hard to break into the US market.
WTC 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 42.18x, compared to its 5-year average of 31.86x, 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 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.
The XRO share price currently trades at a price-sales ratio of 17.33x, which compares to its 5-year long-term average of 18.65x. So, XRO 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 Xero Ltd.
