SHL share price in focus
Sonic Healthcare was listed in April 1987. It is now one of the world’s biggest pathology businesses with operations in Australia, New Zealand, Europe and North America.
It offers a number of different services including laboratory medicine, pathology, diagnostic imaging, radiology, general practice medicine and corporate medical services.
Sonic Healthcare looks to act in the best interests of its doctors and their patients. It aims to provide medical excellence as well as being a highly desirable place to work.
TLS shares
Founded in 1975, Telstra is Australia’s largest telecommunications company by market share, with over 22.5 million retail mobile accounts as of 2023.
Telstra is responsible for building and operating telecommunications networks across Australia, offering a variety of services, including fixed broadband, mobile, data and IP, and digital media. In addition to its operations within Australia, Telstra has a presence in more than 20 countries, providing services to governments and businesses globally.
Telstra’s competitive advantage lies in its extensive reach and scale, covering 99.6% of the Australian population and delivering 5G services to over 85% of the country.
SHL & TLS share price valuation
As a growth company, one way to put a broad estimate on the SHL 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, Sonic Healthcare Ltd shares have a price-sales ratio of 1.37x, compared to its 5-year average of 1.94x, 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 SHL, 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 TLS 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. TLS is paying a trailing dividend yield of around 4.34%, which compares to its 5-year average of 3.62%. This is just one of many ways you could put a value on TLS 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 SHL or TLS.
