FLT share price in focus
Flight Centre is an Australian staple in the travel industry, but you may not know that it operates under multiple names across over 80 countries!
Flight Centre isn’t just limited to booking flights either. They offer services in both the retail and corporate sectors and across sub-sectors including tour operations, travel experiences and hotel management.
Unlike many of the online travel agencies, Flight Centre still has brick-and-mortar locations where customers can come in and have face-to-face consultations. This extra service, as well as the exclusive deals Flight Centre can get access to because of its reach, are what keep customers coming back.
STO shares
Santos Ltd, founded in the 1950s, is one of Australia’s largest oil and gas companies. The company owns and operates an extensive portfolio of oil and gas fields, supported by a network of pipelines and complementary facilities.
Initially established as an exploration-focused business, its name is an acronym for South Australia Northern Territory Oil Search.
In recent years, Santos has faced criticism and legal challenges regarding its climate action targets, with the ACCR accusing the company of greenwashing. Santos has committed to achieving net-zero Scope 1 and 2 emissions by 2040, but this target excludes Scope 3 emissions—those generated by the use of its products—which account for over 75% of the company’s total emissions.
FLT & STO share price valuation
As a growth company, one way to put a broad estimate on the FLT 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, Flight Centre Travel Group Ltd shares have a price-sales ratio of 1.04x, compared to its 5-year average of 3.42x, 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 FLT, 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 STO 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. STO is paying a trailing dividend yield of around 6.82%, which compares to its 5-year average of 4.64%. This is just one of many ways you could put a value on STO 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 FLT or STO.
