It's not easy to say a share is good value when it has overseas revenue and currency fluctuations come into effect. If its main currency drops by 10% compared to the Aussie dollar then that could decimate a company's profit in that year.
Holidaymakers are smart to go overseas when the Aussie dollar is strong and it makes sense to buy overseas ASX-listed shares too. Particularly as the Australian dollar is predicted to weaken again against the US dollar.
Here are two shares that could benefit:
Altium Limited (ASX: ALU)
Altium is the electronic PCB software company that has shot the lights out for shareholders over the past decade.
It reports in US dollars and earns a lot of its revenue from the US too.
Altium could be counted among the best technology shares on the ASX with management predicting that revenue will double by 2020 due to a boom in the industry.
Altium is trading at 30x FY18's estimated earnings with an unfranked dividend yield of 2.11%.
Computershare Limited (ASX: CPU)
Computershare is a truly global service business providing shareholder, employer and secretarial services for lots of businesses.
A lot of its clients are based in North America and Europe, which means its share price could rise if the Australian dollar falls.
Computershare could be described as quite a defensive business because of how integral and recurring its services are for businesses.
Computershare is currently trading at 19x FY18's estimated earnings with an unfranked dividend yield of 2.53%.
Foolish takeaway
There can be times when buying shares with currency effects can be a smart move, I think now could be that time to buy some shares with overseas exposure.
I'm not sure I'd buy either of the above shares at the current price because Altium trades on a rich valuation and Computershare could have trouble growing in the future.
