GMG share price in focus
Goodman Group is a global integrated property group founded in 1989 that owns, develops and manages real estate assets across several continents.
The main operational hubs include markets such as Australia, New Zealand, the UK, Japan, the US, and Brazil, making Goodman the largest ASX-listed property group in 2024.
The company’s investment niche includes projects such as warehouses, large scale logistics facilities and business and office parks. Goodman’s stated mission is to build mutually beneficial, long-term relationships with its customers and deliver high quality assets.
NWL shares
Netwealth is a wealth management software business that provides a platform for financial planners to manage client money.
As of 2024, Netwealth has over 140,000 account holders on its platform and over $88 billion of funds under administration (FUA), making it a major industry player.
GMG share price valuation
One way to have a ‘quick read’ of where the GMG 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, Goodman Group shares have a dividend yield of around 0.84%, compared to its 5-year average of 1.28%. In other words, GMG 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 GMG, we can see that last year’s dividend was less than the 3-year average, so the dividend has been falling.
Since NWL 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 NWL share price currently trades at a price-sales ratio of 28.15x, which compares to its 5-year long-term average of 23.72x. So, its shares are trading above 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 Netwealth Group Ltd.
