COH share price in focus
Cochlear is a medical device company founded in 1981 in Sydney. It designs, manufactures and distributes three different hearing implants for different medical situations.
Cochlear is a global leader in hearing devices and has provided over 750,000 implantable devices. It has over 5,000 employees throughout more than 50 countries.
Cochlear’s mission is to improve its customers’ quality of life who suffer from hearing-related conditions.
QBE shares
QBE began as a marine insurance company in Townsville in the late 1800s and has grown into one of Australia’s largest insurers.
Today, the group operates in 27 countries, offering a broad range of insurance products across the commercial, consumer, reinsurance, and agriculture sectors.
Although QBE has Australian origins, only about 30% of its revenue is now generated domestically, with another 30% coming from the United States and the remainder primarily from Europe.
COH share price valuation
As a growth company, one way to put a broad estimate on the COH 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, Cochlear Ltd shares have a price-sales ratio of 8.74x, compared to its 5-year average of 9.18x, meaning its shares are trading lower than their historical average. This could mean that the share price has fallen, or sales have increased, or both. In the case of COH, 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 QBE 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. QBE is offering a trailing dividend yield of around 3.13%, which compares to its 5-year average of 2.68%. This is just one of many ways you could put a value on QBE 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 COH or QBE.
