PME and JHX: A Simple Valuation Snapshot of ASX200 Players

June 20, 2025 12:51 PM AEST | By Team Kalkine Media

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PME and JHX: A Simple Valuation Snapshot of ASX200 Players — Image source: shutterstock

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Highlights

PME and JHX valuations diverge from long-term trends

PME showcases momentum with innovative radiology software

JHX appears attractively valued relative to its historical norm

Pro Medicus Ltd (PME) and James Hardie Industries plc (JHX) are two notable names within the ASX200 index, each operating in distinctly different sectors—medical imaging software and building materials. Understanding how these companies are valued compared to their historical performance can provide a clearer lens through which to view their current position in the market.

PME (ASX:PME): Innovation Driving Visibility

Pro Medicus is known globally for its advanced radiology software, catering to hospitals, imaging centres, and large-scale healthcare networks. At the core of its offering is the Visage platform—a tool enabling radiologists to remotely access large imaging files through mobile devices. This capability has transformed diagnostic flexibility, potentially enhancing speed and accuracy in patient care.

The company’s comprehensive product suite spans patient scheduling, billing, image archiving, and sophisticated visualisation. Such integrated technology not only streamlines radiology workflows but also aligns with the digital evolution of healthcare systems globally.

In 2025, PME shares have climbed approximately 8.9%, signaling continued investor interest. Currently, Pro Medicus holds a price-to-sales (P/S) ratio of 179.32x. Compared to its 5-year average of 82.69x, this elevated figure suggests a valuation premium—possibly fueled by both revenue growth and future growth expectations. It's worth noting that this metric alone doesn’t offer the full picture, but it provides a useful starting point for assessment.

JHX (ASX:JHX): Strong Foundation, Compelling Valuation

James Hardie Industries is a world leader in fibre cement and gypsum-based building materials, employing over 5,200 people across North America, Europe, Australia, and New Zealand. The appeal of its flagship products lies in their fire resistance, durability, and minimal maintenance requirements—qualities that cater to sustainable building trends.

JHX shares are trading roughly 16.9% above their 52-week low, showing signs of upward momentum. From a valuation standpoint, the company’s P/S ratio currently stands at 2.66x, significantly below its 5-year average of 4.14x. This indicates a more modest valuation compared to its historical norms, which may reflect a market reassessment or potential opportunity relative to earnings or revenue trends.

Final Thought

While Pro Medicus appears to command a valuation premium driven by strong growth and innovation, James Hardie Industries reflects a relatively lower market valuation amidst a stable operational profile. Both stocks remain integral components of the ASX200, representing healthcare technology and infrastructure materials respectively, offering contrasting perspectives for those observing market dynamics.

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