WTC share price in focus
Founded in 1994 by Richard White and Maree Isaacs, Wisetech Global is a developer of cloud-based software used for international and domestic logistics industries.
Wisetech’s vast suite of software products is used across various logistics functions including forwarding & customs, landside transport, rates & contracts, warehousing, and transport management systems.
Their cornerstone software is called Cargowise. It’s become an industry-leading solution now used by all 25 of the largest global freight forwarders and 46 of the top 50 third-party logistics providers.
PLS shares
Pilbara Minerals is a leading ASX-listed lithium company, known for owning 100% of the world’s largest independent hard-rock lithium operation, Pilgangoora, which it acquired in 2014.
The company’s main business is the extraction and sale of spodumene concentrate (lithium-bearing rocks), which it sells through long-term offtake agreements and spot sales on the Battery Material Exchange (BMX) platform. Notable offtake partners include companies like Great Wall, the Chinese automaker, and POSCO, a South Korean steel producer.
WTC & PLS share price valuation
As a growth company, one way to put a rough guesstimate on the WTC 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, WiseTech Global Ltd shares have a price-sales ratio of 26.60x, compared to its 5-year average of 31.86x, 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 WTC, 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 PLS share price currently trades at a price-sales ratio of 4.06x, which compares to its 5-year long-term average of 20.35x. So, PLS 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 Pilbara Minerals Ltd.
