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2 cheap UK shares to buy in September

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I think Playtech (LSE: PTEC) could prove to be a great cheap UK share for me to buy before interim results on September 23. The company, which provides the software and the technical expertise that helps internet gaming firms do what they do, has been on a strong run.

City analysts think earnings will more than double in 2021. This leaves the business trading on a forward price-to-earnings growth (PEG) ratio of 0.2.

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This sort of undemanding rating leaves plenty of scope for meaty share price gains if those financials impress. And I think there’s a great chance of another sound update coming down the pipe as the online betting phenomenon drives demand for its broad range of services. 

But it’s possible the Covid-19 crisis could dent earnings growth if lockdowns persist. Indeed, recent longer-than-expected shutdowns in Italy have dented trading at the firm in recent months.

But I still think the rate at which the online gambling sector’s booming — and particularly in the US where Playtech continues to make steady progress — make this a great cheap UK share to buy today and hold for years.

Indeed, experts at Researchandmarkets.com think the global online gambling market will be worth $112.1bn by 2025. That compares with the $72bn it’s estimated to clock in at this year and $64.1bn in 2020.

Man gambling on computer and mobile phone

A cheap UK share I’d buy for the housing boom

Mortgage Advice Bureau (LSE: MAB1) is another cheap UK share set to release half-year results next month. Slated for 28 September, I’m expecting the financial advice provider to confirm that business remains strong.

I’m not going to suggest that buying Mortgage Advice Bureau shares isn’t without risk. Stamp Duty concessions have helped fuel the homebuyer stampede of the past 12 months. The gradual withdrawal of the tax holiday (with the standard rate due to be imposed again in October) could potentially deal a hammerblow to home sales and thus demand for the mortgage advisers’ services.

However, in my opinion, this risk is more than baked into Mortgage Advice Bureau’s share price today. Brokers think this cheap UK share’s earnings will rocket 60% in 2021. This leaves it trading on a PEG multiple of just 0.6. Like Playtech, this means the company trades on a ratio inside the benchmark of 1. A figure below that suggests a stock could be undervalued.

In fact, I expect Mortgage Advice Bureau’s trading to remain strong for some time yet. Sure, the Stamp Duty holiday’s on borrowed time. But massive government support through Help to Buy equity loans and ISAs remain in place to help potential buyers.

There’s also the fact that Bank of England interest rates look set to remain low, keeping the costs of mortgages at rock-bottom rates. Rising competition among Britain’s lenders should also keep a lid on homeowner costs for a long time yet.

I’d happily buy this cheap share for my own portfolio right now.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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