There’s still a tonne of great cheap shares to buy on the FTSE 100 today. The broader index has risen strongly over the last year. But many top shares have failed to join in the rally. Others have endured some share price volatility following specific recent problems.
Take Berkeley Group (LSE:BKG), Tritax Big Box (LSE:BBOX), and ICG (LSE:ICG). Each carries a:
- Rock-bottom price-to-earnings (P/E) ratio, or
- Huge dividend yield, or
- A combination of both.
Here’s why they’re brilliant bargains to consider.
Sector-leading value
Berkeley Group shares trade on a forward-looking P/E ratio of 10.1 times. This makes it the FTSE 100’s cheapest housebuilder right now. Perhaps this is no surprise after it slashed forecasts in April — profits are now tipped to be £1.4bn between 2027 and 2030, around a third lower than analysts had been expecting.
But with Berkeley’s shares having re-rated, I think now’s a good time for risk-tolerant investors to take a look. Rising inflation poses a threat to home completions if interest rates leap in response. But the long-term picture remains bright.
In London — the company’s core market — 88,000 new homes are needed each year to house its booming population. A similar supply crunch is playing out in the Home Counties, another key region. With a land bank for 50,000 homes, Berkeley is well placed to capitalise on this.
Another big bargain?
It’s hard to argue that Tritax Big Box doesn’t offer great value based on earnings. Its forward price-to-earnings (P/E) ratio is 7.6 times, while the P/E-to-growth (PEG) multiple is 0.2. Any reading below 1 is considered ‘bargain basement’ territory.
This real estate investment trust (REIT) is also a dirt-cheap share based on dividends. The forward yield is 5.8%.
So why’s Tritax so cheap? Again, it reflects fears over future interest rates. Any Bank of England hikes could raise its borrowing costs and depress net asset values. But I think now’s a great time to consider investing. Key property markets including logistics and data centres also face supply shortages that should underpin long-term rental growth.
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Dividend hero
ICG offers a beautiful blend of low P/E ratios and market-beating dividend yields, too. For the current financial year these are 10.2 times and 5.1%, respectively.
This FTSE 100 company lends money to high-net-worth individuals and institutions and manages their investments. The risk of default is greater in times of rising inflation and weak growth, which in seen in its falling share price in 2026.
But here’s the thing. ICG has a great track record of riding out tough times and growing profits, making it worthy of consideration. This is underlined by its ability to grow its yearly dividend for 17 straight years. Looking further out, I think earnings could take off as the number of wealthy individuals seeking financial services grows.
Should you invest £5,000 in Rolls Royce right now?
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Royston Wild does not hold any positions in the companies mentioned.
