JBH share price in focus
Established in 1974, JB Hi-Fi is one of Australia’s largest retailers of electronic and home entertainment products.
The company is broadly split into three business segments, namely JB Hi-Fi Australia, JB Hi-Fi New Zealand and The Good Guys, which sells a similar range of products and was acquired in 2016.
JB Hi-Fi operates through a cost-leadership strategy meaning it competes on price against its competitors. Many of its products are often discounted resulting in much better perceived value for its customers.
BXB shares
Brambles operates the world’s largest pool of reusable pallets, crates, and containers, providing essential support to global supply chains.
The company is best known for its CHEP brand, which operates across the Asia-Pacific, Americas, and Europe, Middle East, and Africa (EMEA) regions.
JBH & BXB share price valuation
As a growth company, one way to put a rough guesstimate on the JBH 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, JB Hi-Fi Ltd shares have a price-sales ratio of 1.12x, compared to its 5-year average of 0.70x, 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 JBH, 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 BXB 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. BXB is paying a trailing dividend yield of around 2.47%, which compares to its 5-year average of 2.66%. This is just one of many ways you could put a value on BXB 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 JBH or BXB.
