PME share price in focus
Pro Medicus is an established provider of radiology software for hospitals, imaging centres and healthcare groups worldwide.
The Pro Medicus suite of products centres around radiology information systems (RIS), Picture Archiving and Communication Systems (PACS), and advanced visualisation solutions. These products support everything from patient scheduling and billing to fast medical imaging interpretations and analysis, making the company relevant at every stage of the radiology process.
The company’s flagship product is their Visage software, which allows radiologists to view large image files generated by X-rays remotely on mobile devices. This wasn’t previously possible, but it now allows diagnostic decisions to be made on-the-go with the aim of improving patient outcomes.
JHX shares
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.
PME & JHX share price valuation
As a growth company, one way to put a broad projection on the PME 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, Pro Medicus Limited shares have a price-sales ratio of 135.86x, compared to its 5-year average of 82.69x, 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 PME, 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.
The JHX share price currently trades at a price-sales ratio of 1.76x, which compares to its 5-year long-term average of 4.14x. So, JHX shares are trading lower than their historical average. Don’t forget, a simple multiple like this should only be the start of your research. The Rask websites offer free online investing courses, created by analysts explaining things like Discounted Cash Flow (DCF) and Dividend Discount Models (DDM). They even include free valuation spreadsheets! It’s a good idea to use multiple valuation methods to value a share like James Hardie Industries plc.
