A deep dive into WTC shares

Is the WiseTech Global Ltd (ASX:WTC) share price undervalued? Here are 3 reasons you might want to consider WTC shares.
The WiseTech Global Ltd (ASX:WTC) share price is down 39.6% since the start of 2025. Let’s take a look at why investors might be interested in WTC shares.

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.

The appeal of ASX Information Technology shares

The S&P/ASX200 Info Tech Index (ASX: XIJ) has delivered an average annual return of 14.37% over the last 5 years, compared to the broader ASX 200’s 7.72% return. So, here’s why tech shares like WTC are drawing attention.

High Margins

Tech companies often boast better margins than more ‘traditional’ brick-and-mortar businesses. That is, they tend to be more profitable.

This is because they usually have low marginal costs and lower overheads (things like plant and equipment).

WTC’s latest annual report revealed gross margins of 84.00% and an operating margin of 37.30%.

Recurring revenue

Many tech businesses benefit from recurring revenue models like ‘software-as-a-service’ (SaaS). Compared to one-time product sales, this subscription-based approach generates consistent income, smooths revenue, and enhances predictability over time.

Global scale

Unlike physical businesses constrained by logistics, regulations, and trade wars, tech firms can often reach global markets with much less effort (and cost). By dealing in software accessible by something as simple as an internet connection, tech companies can quickly and efficiently increase their customer base.

WTC share price valuation

As a growth company, one way to put a rough forecast on the WTC share price could be to compare its price-to-sales multiple over time. Currently, WiseTech Global Ltd shares have a price-sales ratio of 24.03x, compared to its 5-year average of 31.86x, meaning its shares are trading below their historical average. This could mean that the share price has fallen, or sales have increased. In the case of WTC, revenue has been growing over the last 3 years.

Please keep in mind that context is important – and this is just one valuation technique. Investment decisions can’t just be based on one metric.

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! Both of these models would be a better way to value the WTC share price.

Better investing starts here.

Want to level-up your analytical skills and investing insights but don’t know where to start? Join 50,000 Australian investors on our mailing list and we’ll send you our favourite podcasts, courses, resources and investment articles every Sunday morning. Grab a coffee and let Owen and the team bring you the best  insights.

5%+ in passive income

Owen Rask’s investing report available

With bond ETFs like ASX:IAF and the S&P 500 riding high, now could be one of the best times to start earning passive income from a portfolio of shares and ETFs.

In this free analyst report, our Chief Investment Officer, Owen Rask, names 10 ASX stocks and ETFs to watch.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Skip to content