PME share price in focus
Pro Medicus is an established provider of radiology software for hospitals, imaging centres and healthcare 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, making the company relevant at every stage of the radiology process.
The company’s flagship product is their Visage software, which allows radiologists to view large image files generated by X-rays remotely on mobile devices. This wasn’t previously possible, but it now allows diagnostic decisions to be made on-the-go with the aim of improving patient outcomes.
STO shares
Santos Ltd is one of Australia’s largest oil and gas companies. Founded in the 1950’s, Santos owns and operates one of Australia’s largest portfolios of oil and gas fields, connected by extensive pipelines and complementary facilities.
The company started life as an exploration-focused business, and the name is an acronym for South Australia Northern Territory Oil Search.
Santos has recently faced criticism and court cases over their climate action targets, with the ACCR accusing the company of greenwashing. At present, Santos’ stated goal is to achieve net-zero Scope 1 & 2 emissions by 2040, however this does not account for Scope 3 emissions (those generated by the use of their products) which account for more than 75% of the company’s total emissions.
PME share price valuation
As a growth company, one way to put a broad projection on the PME 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, Pro Medicus Limited shares have a price-sales ratio of 166.76x, compared to its 5-year average of 82.69x, 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 PME, 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.
Since it is a more of a ‘blue chip’ company, we could look at the dividend yield of STO to determine its value. If we compare it to the historical dividend yield, we can get a sense of the stability of the company and its ability to pay out income. STO is offering a trailing dividend yield of around 5.82%, which compares to its 5-year average of 3.82%. This is just one of many ways you could put a value on STO 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 which can help you learn how to value a company like PME or STO.
