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The FTSE 100 has loved a stable run in 2025 to date, with investor sentiment buoyed by easing inflation and the prospect of decrease rates of interest. However regardless of the broader rally, there are nonetheless pockets of worth hiding in plain sight. Some shares proceed to commerce on modest valuations, whilst their financials and share costs present indicators of restoration.
By specializing in basic valuation metrics just like the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-earnings development (PEG) ratio, buyers can establish high quality corporations buying and selling beneath their perceived price.
Listed below are two low cost FTSE 100 shares that I imagine buyers ought to think about as we head into the second half of 2025.
BT Group
Because the UK’s largest telecommunications agency, BT Group (LSE: BT.A) wants no introduction. It’s supplied analogue and digital communication providers throughout the nation for nearly 180 years. After an extended interval of underperformance, the shares have staged a comeback in 2025, rising 34% this 12 months to round 190p, bringing the corporate’s market-cap to £18.78bn.
But regardless of the rally, the shares nonetheless look cheap. The P/E ratio stands at 17.9, whereas the PEG ratio’s simply 0.7, suggesting that earnings development could also be underappreciated by the market. In the meantime, a P/S ratio of 0.94 implies that buyers are paying lower than £1 for each £1 of income — an encouraging signal for worth seekers.
BT’s additionally proving enticing for revenue buyers, with a dividend yield of 4.2% and a sustainable payout ratio of 75.7%. Operationally, the corporate’s on stable floor, posting an working margin of 16.3% and a return on fairness (ROE) of 8.3%.
Nonetheless, buyers shouldn’t ignore the dangers. Its debt-to-equity (D/E) ratio’s a excessive 1.81, which leaves BT uncovered to rising financing prices. There are additionally challenges from regulatory value controls and the large capital expenditure required for full-fibre broadband rollouts. These components could restrict how a lot shareholder worth it may possibly return within the close to time period.
Nonetheless, for worth buyers, I really feel it’s some of the promising-looking shares on the Footsie proper now.
Centrica
Centrica (LSE: CNA), the mum or dad firm of British Gasoline, operates in vitality provide, buying and selling and storage. Shares have risen 13% in 2025, at present buying and selling at 165p, with a market-cap of £7.8bn. Not like many friends, Centrica has emerged from the vitality disaster with leaner operations and a sharper concentrate on profitability.
Valuation-wise, the inventory seems undeniably low cost. The P/E ratio’s simply 6.67, the P/S ratio’s 0.42, and the price-to-free money circulation ratio stands at 7.37. These figures recommend the market has but to totally value in Centrica’s improved fundamentals.
It additionally boasts a wonderful working margin of 28.3% and an excellent ROE of 32.1%. The dividend yield’s modest at 2.7% however the payout ratio’s simply 17.8%, leaving important room for future will increase. Debt’s additionally properly underneath management, with a D/E ratio of 0.78.
As all the time, dangers stay. Centrica’s uncovered to risky vitality markets, political scrutiny over pricing and the transition to renewable vitality, which can require large-scale funding within the years forward.
Total, I believe each shares are at present undervalued, with a superb likelihood of ending this 12 months increased.
