HUB share price in focus
HUB24 is a leading player in the wealth management software industry, offering diversified solutions across financial advice, superannuation, and investment management.
HUB24’s three main products are its platforms HUB24, Class, and myprosperity. The HUB24 platform is designed for financial advisers and their clients, providing access to a range of managed funds and investment products. Class is a leading software for self-managed super funds to manage portfolios, legal documentation, and compliance. myprosperity is focused on accountants and advisers, enabling them to provide an enhanced service and customer experience.
HUB24’s competitive advantage is in the quality of its service. In 2024 they were awarded Overall Best Platform in the Adviser Ratings Financial Advice Landscape Report, and ranked first for Overall Satisfaction and Brand Image and Reputation in the 2024 Wealth Insights Platform Service Level Report.
DOW shares
Downer is the leading provider of integrated infrastructure services across Australia and New Zealand, specialising in the construction, maintenance, and operation of transit systems, utility services, and public infrastructure.
While the name might not instantly recognisable, their work is highly visible. For instance, Downer operates Melbourne’s Yarra Trams and manufactures the passenger trains you see in most states.
HUB & DOW share price valuation
As a growth company, one way to put a rough guesstimate on the HUB 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, Hub24 Ltd shares have a price-sales ratio of 19.20x, compared to its 5-year average of 13.32x, 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 HUB, 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 DOW is more of a ‘blue chip’ company, we could look at its dividend yield 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. DOW is offering a trailing dividend yield of around 3.07%, which compares to its 5-year average of 3.74%. This is just one of many ways you could put a value on DOW 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 HUB or DOW.
