Kalkine: ASX200 Watch: What Falling COH and Rising JBH Valuations Could Mean for 2025

June 06, 2025 01:33 PM AEST | By Team Kalkine Media

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Kalkine: ASX200 Watch: What Falling COH and Rising JBH Valuations Could Mean for 2025 — Image source: shutterstock

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Highlights

COH shares trade below historical valuation average

JBH shares surge above long-term valuation trend

Both companies feature on investors’ ASX200 radar

In the ever-evolving landscape of the ASX200 index, Cochlear Ltd (COH) and JB Hi-Fi Ltd (JBH) have drawn attention for very different reasons in 2025.

Cochlear Ltd (ASX:COH)

Cochlear Ltd, a renowned leader in the hearing device industry, has seen its share price dip around 7.7% since the start of 2025. Established in 1981 in Sydney, the company designs and manufactures advanced hearing implants tailored to various medical conditions. With more than 750,000 devices delivered globally and operations in over 50 countries, Cochlear maintains a robust presence in the medical technology sector.

Despite its operational strength and continued revenue growth over recent years, the valuation of COH shares has shifted. Currently, the stock trades at a price-to-sales (P/S) ratio of 7.93x—noticeably below its five-year average of 9.18x. This decline could reflect a combination of share price moderation and revenue expansion, indicating a potential rebalancing of investor sentiment or market expectations. While not conclusive on its own, this valuation indicator may prompt a closer look from those monitoring ASX dividend stocks and long-term growth trends.

JB Hi-Fi Ltd (ASX:JBH)

In contrast, JB Hi-Fi Ltd has displayed notable strength, with its share price standing 86.4% above its 52-week low. Founded in 1974, JB Hi-Fi is a dominant player in Australia’s consumer electronics and home entertainment retail space. The business operates through three primary arms: JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys.

The company employs a cost-leadership strategy, offering competitive prices and regular promotions that enhance perceived value. This strategic positioning appears to resonate well with consumers and investors alike. Its current P/S ratio is 1.26x—well above its 5-year average of 0.70x—suggesting strong market confidence and potential earnings support.

While Cochlear Ltd and JB Hi-Fi Ltd both belong to the ASX200 index, their stock trajectories in 2025 tell different stories. Cochlear’s dip below its historical valuation range invites scrutiny, especially against a backdrop of rising revenues. On the other hand, JB Hi-Fi’s elevated valuation points to investor optimism, likely fueled by strong performance and retail strategy execution.

Together, these stocks represent contrasting narratives within the broader universe of ASX dividend stocks and growth-oriented sectors, providing valuable case studies for those tracking shifts within the ASX200 landscape.

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