NWL share price in focus
Netwealth is a wealth management software business that provides a platform for financial planners to manage client money.
As of 2024, Netwealth has over 140,000 account holders on its platform and over $88 billion of funds under administration (FUA), making it a major industry player.
Netwealth’s big advantage is its scale and the user-friendly interface offered through the online platform. Through one central dashboard, users can buy and sell investments, track performance, and view account summaries, reports and tax statements.
GMG shares
Founded in 1989, Goodman Group is a leading global property group that owns, develops, and manages real estate assets across multiple continents.
As the largest ASX-listed property group, Goodman operates in key markets including Australia, New Zealand, the UK, Japan, the US, and Brazil.
The company focuses primarily on large-scale logistics facilities, warehouses, and business and office parks. Goodman’s mission is to foster long-term, mutually beneficial relationships with its customers while delivering high-quality, sustainable assets.
NWL & GMG share price valuation
As a growth company, one way to put a broad estimate on the NWL 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, Netwealth Group Ltd shares have a price-sales ratio of 25.73x, compared to its 5-year average of 23.72x, 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 NWL, 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 GMG 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. GMG is offering a trailing dividend yield of around 0.96%, which compares to its 5-year average of 1.28%. This is just one of many ways you could put a value on GMG 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 NWL or GMG.
