I’m looking at WOW stock price in 2024

THE Woolworths Group Ltd. (ASX:WOW) share price is down around 11.5% since the start of 2024. CAR Group Limited (ASX:CAR) share price is down 40.3% from its 52-week low.

Focus on the WOW share price

Founded in 1924, Woolworths is a retail operator in Australia and New Zealand with more than 3,000 stores and more than 100,000 employees. It is one of Australia’s largest companies by revenue and market share.

Woolworths’ main businesses include supermarkets (branded as Woolworths in Australia and Countdown in New Zealand), retail through its discount department stores under the Big W brand, and business-to-business (B2B) brands like PFD. However, its market share of over 35% of Australian food products is undoubtedly its crown jewel.

Woolworths is a very popular choice for many ASX investors looking for dividend income. Historically, it has always paid a fully frank dividend, typically with a yield above 3%, and offers a very defensive earnings stream, with most of the revenue coming from consumer staples. Its competitive advantage is best summed up by scale (distribution, low costs, etc.) and proximity (most shoppers still shop based on distance to the supermarket).

CAR Stocks

Founded in 1997, Carsales.com is an online marketplace specializing in car, motorcycle and boat advertisements in Australia.

As a marketplace provider, Carsales.com aims to simplify and improve the buying and selling process for both parties. Large online transactions are also more secure than cash transactions because funds can be held on deposit and released only when both parties are satisfied with the transaction.

The business has grown to over 600 employees and serves various countries outside of Australia, many of which are in South America and South East Asia.

WOW stock price valuation

One way to get a “quick read” on the WOW stock price situation might be to study something like dividend yield over time. Remember that the dividend yield is actually the “cash flow” to a shareholder, but it can fluctuate from year to year or between payments. Currently, Woolworths Group Ltd shares have a dividend yield of around 4.34%, compared to the 5-year average of 2.92%. Simply put, WOW stock is trading above its historical average dividend yield. Be careful how you interpret this information, though: it could mean dividends are increasing, or the stock price is falling, or both. In WOW’s case, last year’s dividend was above the three-year average, so it increased.

Since CAR is more of a growth company than an established blue-chip company, a price-to-sales ratio might be a more appropriate valuation. The CAR stock price is currently trading at a price-to-sales ratio of 12.92x, compared to its 5-year long-term average of 14.28x. Thus, CAR shares are trading below their historical average. However, a simple multiple like this should only be the beginning of your search. 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 assessment worksheets! Remember, there are many different ways to value a stock, like CAR Group Limited.