ALL share price in focus
Aristocrat Leisure is an Australian gambling machine operator headquartered in Sydney. It was founded by Len Ainsworth in 1953
Today, Aristocrat is the largest gambling machine manufacturer in Australia and one of the largest manufacturers of slot machines in the world. However, the business has diversified over the years and now also makes online mobile games. This segment has grown steadily to now make up nearly half of the company’s revenue.
The gaming machines Aristocrat make can be sold outright to a venue or gaming operator. Alternatively, a machine can be installed with a proportion of the revenue generated being paid on a recurring basis back to Aristocrat.
SHL shares
Sonic Healthcare, listed in April 1987, has grown into one of the world’s largest pathology businesses, with operations spanning Australia, New Zealand, Europe, and North America.
The company provides a wide range of services, including laboratory medicine, pathology, diagnostic imaging, radiology, general practice medicine, and corporate medical services.
ALL share price valuation
As a growth company, one way to put a rough guesstimate on the ALL 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, Aristocrat Leisure Limited shares have a price-sales ratio of 6.71x, compared to its 5-year average of 4.87x, 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 ALL, 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 SHL share price currently trades at a price-sales ratio of 1.46x, which compares to its 5-year long-term average of 1.94x. So, SHL 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 Sonic Healthcare Ltd.
