JHX share price in focus
James Hardie Industries is a building solutions company and the world’s largest producer of fibre cement and gypsum products.
The company operates across North America, Europe, Australia, and New Zealand with a team of more than 5,200 employees.
The main selling point of fibre cement for buildings is that the product doesn’t burn, is resistant to water and termite damage, and is durable and requires low maintenance.
SCG shares
Scentre Group is a real estate company specializing in shopping centres, operating under the Westfield brand in Australia and New Zealand.
The group manages a portfolio of 42 centres valued at over $34 billion, boasting an occupancy rate exceeding 99% and attracting more than half a billion visitors annually.
These centres are strategically located in prime trade areas and feature long-term tenancies with retailers catering to diverse consumer interests in fashion, dining, leisure, and entertainment.
JHX & SCG share price valuation
As a growth company, one way to put a broad estimate on the JHX 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, James Hardie Industries plc shares have a price-sales ratio of 3.67x, compared to its 5-year average of 4.14x, 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 JHX, 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 SCG 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. SCG is offering a trailing dividend yield of around 5.11%, which compares to its 5-year average of 4.78%. This is just one of many ways you could put a value on SCG 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 JHX or SCG.
