In the last year, shares in Aberdeen Asset Management (LSE: ADN) have slumped by 25%. The main reason for this is uncertainty regarding China as the investment management company has significant exposure to the emerging world. This has caused investors to become rather nervous about its growth prospects, with Aberdeen’s bottom line due to fall by 39% this year.

Clearly, there’s scope for further declines in the company’s share price, but with Aberdeen now having a yield of 6.5%, it appears to be very cheap. And due to earnings being forecast to rise by 7% next year, its financial performance seems likely to turn around in the short-to-medium term. This could have a positive impact on investor sentiment and help Aberdeen to reverse its disappointing performance of the last year.

Furthermore, the long-term potential of China and the emerging world remains significant. Therefore, while Aberdeen’s exposure to it has been a downside in the last year, it could prove to be anything but in the long run.

Growth ahead?

Also trading on a bargain basement valuation is Prudential (LSE: PRU). It has fallen by 20% in the last year and this is largely due to the same reason as Aberdeen: its exposure to an uncertain emerging world. However, in Prudential’s case, management changes have also caused investor sentiment to come under pressure, which is often the case when any successful business makes changes to its key management positions.

The strategy Prudential has in place, however, is very sound. Financial product penetration in the emerging world is low and this creates an opportunity for the company to record strong growth over a sustained period. And with Prudential now having a price-to-earnings (P/E) ratio of just 11, it seems to offer significant upward rerating potential. That’s especially the case since it’s expected to return to high single-digit earnings growth in the next financial year.

Potential bargain

Meanwhile, Lloyds (LSE: LLOY) remains a dirt cheap stock and one that seems to be performing well as a business. For example, it has a price-to-book (P/B) ratio of just 0.85, which indicates that an upward rerating is on the cards. Certainly, the outlook for the UK economy is uncertain and asset impairments can’t be ruled out. However, such a low P/B ratio is difficult to justify given Lloyds’ financial strength, efficiency and profitability.

Clearly, investor sentiment towards Lloyds is weak. This is evidenced by its share price performance in the last month, with its valuation declining by over 10%. However, due to its strong asset base that’s now much more appealing than during the credit crunch thanks to an asset disposal programme, Lloyds looks set to survive even a highly challenging period of economic performance. Therefore, for long-term investors, it seems to be a bargain buy at the present time.

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Peter Stephens owns shares of Aberdeen Asset Management, Lloyds Banking Group, and Prudential. The Motley Fool UK has recommended Aberdeen Asset Management. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.