QBE share price in focus
QBE started out as a marine insurance company in Townsville in the late 1800’s and today is one of the country’s largest insurers.
The insurance group operates in 27 countries and offers insurance products across commercial, consumer, reinsurance, and agriculture sectors.
While QBE began as an Australian company, only around 30% of the revenue is now generated in Australia, with another 30% from the US and the remaining revenue predominantly coming from Europe.
MQG shares
Macquarie Group is a multinational investment bank and financial services company that was founded in 1969.
Macquarie’s operations are a bit different to the rest of the big Australian banks. While it does have a normal banking division, it is also an asset management company with investment operations spanning infrastructure, commodities, agriculture, real estate, and global equity markets.
Macquarie prides itself on delivering consistent value to shareholders, with a more than 55-year record of unbroken profitability.
QBE share price valuation
One way to have a ‘fast read’ of where the QBE share price is could be to study something like dividend yield over time. This can give us a sense of the stability of the company and whether they can consistently pay out a percentage of profits.
Remember, the dividend yield is basically the ‘cash flow’ to a shareholder, but it can fluctuate year-to-year or between payments. Currently, QBE Insurance Group Ltd shares have a dividend yield of around 3.26%, compared to its 5-year average of 2.68%. In other words, QBE shares are trading higher than their historical average dividend yield. Be careful how you interpret this information though – it could mean that dividends are growing, or it could mean the share price is falling, or both. In the case of QBE, the annual report shows last year’s dividend was greater than the 3-year average, so the dividend has been growing.
MQG is offering a historical dividend yield of around 2.83%, which compares to its 5-year average of 3.16%. Of course, this is just one of many ways you could put a value on MQG 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! It’s important to look at multiple methods when you’re trying to value the MQG share price.
