What are the elements of stock value?
There are four fundamentals in investing that are used to determine a stock's worth. The P/B ratio is the worth of a firm if it were to be dismantled and sold right now.
The price-to-earnings ratio (P/E) is among the most closely watched metrics. Stock price spikes are the “sizzle,” while the P/E ratio is the “steak.”
The price to earnings growth (PEG) ratio is used by many investors in place of the traditional P/E ratio because of its greater predictive power. The PEG ratio considers the company's profits growth rate in addition to the price and earnings.
How much of a return on investment you are receiving may be calculated using the dividend yield? The dividend yield is calculated by dividing the yearly pay-out by the stock price.
5 Best Performing Shares on the JSE
Gold Fields Limited (JSE: GFI)
One of the biggest gold mining companies in the world is Gold Fields Limited, originally known as The Gold Fields of South Africa.
In 1998, Gold Fields of South Africa Limited and Gencor Limited merged their respective gold operations to establish the current company. Gold Fields of South Africa Limited was established by Cecil Rhodes in 1887.
Measures of value suggest that Gold Fields Limited is now under-priced. To put it another way, with a Value Score of B, it is a solid choice for value investors.
The strength of GFI's balance sheet and its outlook for future development indicates that it could outperform the market.
With a current market value of ZAR 133 billion, or around 0.664% of the Johannesburg Company Exchange's equity market, Gold Fields Ltd is the 24th most valuable stock on the JSE.
| Growth, Valuation, Trading Results | Information |
| Share Price | 154.75 ZAR |
| Market Capitalization | 133 billion ZAR |
| Shares Outstanding | 891 million |
| Gross Turnover | 365 million ZAR |
| Trading Volume | 2.38 million ZAR |
| Earnings Per Share | 14.79 ZAR |
| P/E Ratio | 10.06 |
| Dividend Yield | 3.16% |
| Dividend Per Share | 4.70 ZAR |
FirstRand Limited
FirstRand Limited is a holding company that controls the operations of FirstRand Bank. The company offers banking, insurance, and investment services to consumers, businesses, and government agencies.
With a current market value of ZAR 369 billion or around 1.85% of the equities market on the Johannesburg Company Exchange, FirstRand Limited is the 10th most valuable stock currently.
FirstRand's stock started the year trading at 60.80 ZAR per share, making it the 77th best-performing stock on the JSE so far this year.
In the most recent fiscal year, FirstRand had a healthy increase in performance, with earnings of R 15 billion, an increase of 22%. FNB, the group's primary profit provider, did well with a 20% rise in earnings; RMB and WesBank both did well due to increases in new business volumes.
| Growth, Valuation, Trading Results | Information |
| Share Price | 64.84 ZAR |
| Market Capitalization | 369 billion ZAR |
| Shares Outstanding | 5.61 billion |
| Gross Turnover | 331 million ZAR |
| Trading Volume | 5.06 million ZAR |
| Earnings Per Share | 5.63 ZAR |
| P/E Ratio | 11.68 |
| Dividend Yield | 4.71% |
| Dividend Per Share | 3.10 ZAR |
Nedbank Group Limited (JSE: NED)
Founded in 1888 in Amsterdam, Nedbank Group Limited is a bank holding company that offers personal, commercial, corporate, and merchant banking, fund management, and other financial services in South Africa.
Nedbank Group is one of the four major banks in South Africa, and Nedbank Limited is its primary banking business.
In addition, Nedbank has offices throughout London, the Isle of Man, as well as subsidiaries and affiliates in sub-Saharan Africa.
Nedbank shares are now available at a price that makes them an appealing investment opportunity, with a tremendous upside potential should economic circumstances improve marginally.
Nedbank Group Limited is the twenty-ninth most valuable stock on the JSE with a market value of ZAR 111 billion, which represents about 0.553% of the Johannesburg Stock Exchange equity market.
| Growth, Valuation, Trading Results | Information |
| Share Price | 213.74 ZAR |
| Market Capitalization | 111 billion ZAR |
| Shares Outstanding | 512 million |
| Gross Turnover | 210 million ZAR |
| Trading Volume | 970,000 ZAR |
| Earnings Per Share | 24.10 ZAR |
| P/E Ratio | 8.97 |
| Dividend Yield | 5.51% |
| Dividend Per Share | 11.91 ZAR |
Discovery Limited (JSE: DSY)
Adrian Gore and Barry Swartzberg established Discovery Limited in 1992. Through Momentum Group, RMB Holdings (RMBH) purchased a share in the company the next year, and in turn, made Discovery Limited a subsidiary of RMBH (now part of MMI Holdings Limited).
Listed on the JSE, South Africa-based Discovery Limited provides a wide range of financial services. By way of its several divisions, Discovery Limited provides services including long- and short-term insurance, asset management, savings, investment, and employee benefits.
The Group operates overseas branches in countries like South Africa, the UK, the USA, China, Singapore, and Australia.
Market capitalization for Discovery Limited is ZAR 86.4 billion as of today, ranking it as the 38th most valuable company on the JSE and accounting for around 0.432% of the equities market on the Johannesburg Stock Exchange.
| Growth, Valuation, Trading Results | Information |
| Share Price | 127.55 ZAR |
| Market Capitalization | 86.4 billion ZAR |
| Shares Outstanding | 677 million |
| Gross Turnover | 84.4 million ZAR |
| Trading Volume | 650,000 ZAR |
| Earnings Per Share | 6.73 ZAR |
| P/E Ratio | 18.94 |
| Dividend Yield | 0.79% |
| Dividend Per Share | 1.01 ZAR |
Absa Group Limited (JSE: ABG)
As a South African financial services conglomerate, Absa Group Limited (ABG: formerly Barclays Africa Group Limited) provides a wide range of banking, credit card, corporate and investment banking, bank assurance products and services, and several others to individuals and businesses.
The Absa Group, which trades on the Johannesburg Stock Exchange (JSE), is a major monetary services provider throughout 12 African nations.
Absa is well-positioned to take advantage of Africa's expansion because of its established presence in the continent's markets, as well as its regional and global experience.
With a current market value of ZAR 143 billion or around 0.717% of the equity market on the Johannesburg Company Exchange, Absa Group Limited is the 22nd most valuable stock currently.
In terms of year-to-date performance on the JSE, Absa is now ranked in the 67th position after seeing its share price increase by 10.9% from its opening price of 152.55 ZAR at the start of 2022.
| Growth, Valuation, Trading Results | Information |
| Share Price | 167.84 ZAR |
| Market Capitalization | 143 billion ZAR |
| Shares Outstanding | 848 million |
| Gross Turnover | 221 million ZAR |
| Trading Volume | 1.31 million ZAR |
| Earnings Per Share | 21.47 ZAR |
| P/E Ratio | 7.88 |
| Dividend Yield | 4.64% |
| Dividend Per Share | 7.85 ZAR |
How to choose the Right Share Broker in South Africa
South African traders could not have picked a more favourable time to enter the investment market than the present. Competition among online brokers is high, which means costs are dropping down and features are being boosted.
Those interested in trading global financial instruments could choose from a wide variety of online forex and CFD brokers. However, there are several factors to consider when choosing a broker and we will go through them here.
Commission Charges
Individual stocks, options, mutual funds, exchange-traded funds, and bonds are the main investment types offered by brokers. Some will also provide exposure to the forex market, futures trading, and cryptocurrency exchanges.
Both the suitability of the broker's offerings to your investment requirements and the fees you must pay is dependent on the investments the broker has available. You should pay close attention to the commissions that are involved with the investments you like.
Overall Reliability
There is a diverse selection of brokers available. Several have been popular for many years, while others have just recently emerged.
That does not imply they cannot be trusted, but if they are managing transactions for clients, they are members of a self-regulatory organization like the Financial Conduct Authority (FCA), the Financial Sector Conduct Authority (FSCA) and other regulators, or subject to additional oversight.
Account Fees
While it could be impossible to eliminate account fees, they may be kept to a minimum. To withdraw funds or investments, or to close your account, most brokers will assess a fee. When switching brokers, your new firm could pay some or all your transfer expenses.
If a broker does not charge them, or if you do not use their optional services, you could avoid paying most additional costs.
Annual costs, inactivity fees, trading platform subscriptions, and additional charges for research or data are all examples of the kind of expenses you should be aware of.
Pricing and Execution on Trades
Cost is less of a factor today, leading to commission-free transactions becoming the norm at most brokerages.
However, you should consider the brokerage's position on the controversial practice of paying for order flow and how much it costs before making a final decision.
This is especially true if you are an active trader who wants their deal completed at the best price possible, even if it means a difference of a few cents.
Additional Tools, Educational Materials, and Features
Look for a brokerage that provides free educational tools like live webinars, detailed how-to instructions, video tutorials, glossaries, and more if you are just starting in the investment world.
You should also look at the broker's commitment to educating its customers about the inherent hazards of more complex trading tactics like options.
Conclusion
The JSE is one of Africa’s largest stock exchanges and South Africans can choose from a wide range of companies in which to invest. While the South African market has had its fair share of difficulties in 2022, we have provided a list of the best-performing shares in the market currently.
