BXB share price in focus
Brambles manages the world’s largest pool of reusable pallets, crates, and containers, providing a service central to most supply chains globally.
The company is better known by its main brand CHEP, which has operations across the Asia-Pacific, Americas, and Europe Middle East and Africa (EMEA) regions.
Brambles makes money through a hiring model. For example, a manufacturer will make a product, then transfer the product to a retailer on CHEP pallets. Those pallets are then transferred back to CHEP or to another manufacturer or retailer in the supply chain. At each step, Brambles collects daily hire fees on its pallets and crates.
COH shares
Cochlear is a medical device company founded in 1981 in Sydney. It designs, manufactures and distributes three different hearing implants for different medical situations.
Cochlear is a global leader in hearing devices and has provided over 750,000 implantable devices. It has over 5,000 employees throughout more than 50 countries.
Cochlear’s mission is to improve its customers’ quality of life who suffer from hearing-related conditions.
BXB & COH share price valuation
One way to have a ‘fast read’ of where the BXB share price is could be to study something like dividend yield over time. This can give us a sense of the stability of the company and whether they can consistently pay out a percentage of profits.
Remember, the dividend yield is basically the ‘cash flow’ to a shareholder, but it can fluctuate year-to-year or between payments. Currently, Brambles Ltd shares have a dividend yield of around 2.44%, compared to its 5-year average of 2.66%. In other words, BXB shares are trading lower than their historical average dividend yield. Be careful how you interpret this information though – it could mean that dividends have fallen, or that the share price is increasing, or both. In the case of BXB, the annual report shows last year’s dividend was greater than the 3-year average, so the dividend has been growing.
Since COH is more of a ‘growth’ company than an established blue chip, a price-sales ratio might be a more appropriate assessment. This ratio gives us an idea of how the company has historically been valued relative to its earnings, which can indicate if the company is over or undervalued today. The COH share price currently trades at a price-sales ratio of 7.33x, which compares to its 5-year long-term average of 9.18x. So, COH 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 Cochlear Ltd.
