With P/E ratios below 8, I think these FTSE 250 shares are bargains!

The forward P/E ratios on these FTSE 250 shares are far below the index average of 14.1 times. I think they’re worth close attention.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Investors don’t need to spend a fortune to acquire top-quality FTSE 250 shares. Here are two to consider with excellent long-term potential despite their low price-to-earnings (P/E) ratios.

ITV

Created with Highcharts 11.4.3ITV PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

Amid improving conditions in the advertising market, ITV (LSE:ITV) could be about to overcome the horrors of recent years.

The broadcaster’s share price has slumped 55% since 2019, a period that also saw it affected by writers’ and actors’ strikes in the US.

Should you invest £1,000 in British American Tobacco right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if British American Tobacco made the list?

See the 6 stocks

In 2025, ITV expects total advertising revenues to rise 2.5%. That’s even though final quarter results will be impacted by extremely-strong comparatives and advertisers’ jitters surrounding October’s Budget.

Digital avertising revenues are especially strong, up 15% between January and September. This pays testament to the huge success of the company’s ITVX streaming platform, a possible lever for robust long-term profits growth.

I think ITV shares are worth serious consideration at current prices, trading on a forward P/E ratio of 7.2 times.

On top of this, its forward price-to-earnings growth (PEG) ratio is 0.6. Any sub-1 reading indicates that a share is undervalued relative to predicted profits.

The 7.9% forward dividend on ITV shares provides an added sweetener. This is more than double the FTSE 250 average of 3.4%.

Like any share, investing in this broadcasting giant involves taking on some risk. It faces extreme competition from other forms of media, and especially other streaming companies. Its recovery may also be hindered by a prolonged downturn in the domestic economy.

Yet on balance, I think the potential benefits of ITV shares still make them worth considering. And especially given their low valuation.

Bank of Georgia Group

Created with Highcharts 11.4.3Lion Finance Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

The risks facing Bank of Georgia (LSE:BGEO) have risen recently. That’s despite the fact the Eurasian country’s economy — and as a consequence, its banking industry — continues to boom.

Helped by an 11.1% GDP jump in quarter three, the FTSE 250 bank saw lending activity up 18.8% at constant currencies. This was up from 17.7% the quarter before.

And so pre-tax profit soared 43.8% during the third quarter.

Investors are worried about the long-term economic implications of Georgia’s political crisis on its banks. The country’s in a tug of war over between politicians who want better ties to Europe and those who see its future alongside Russia.

But could this uncertainty now be baked into the cheapness of Bank of Georgia shares? I think the answer could be yes.

Today its forward P/E ratio sits at 3.3 times. This is well below the bank’s five-year average close of 5.4 times.

The emerging market bank’s forward PEG, meanwhile, is a rock-bottom 0.1.

It’s also worth remembering the bank’s Armenian operations could help offset potential problems in its home market. It sources around 22% of pre-tax profits from Georgia’s southerly neighbour.

With Bank of Georgia also carrying a 5.1% dividend yield, I think it’s another attractive value share to consider.

Should you invest £1,000 in British American Tobacco right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if British American Tobacco made the list?

See the 6 stocks

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended ITV. 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.

We think earning passive income has never been easier

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

More on Investing Articles

Investing Articles

Here’s the dividend forecast for Rolls-Royce shares as Trump rocks the markets

Rolls-Royce shares have joined in the volatility over the past week. However, with the direction being largely downwards, the dividend…

Read more »

Young Asian man drinking coffee at home and looking at his phone
Investing Articles

Dividend yields of up to 11%! Here are 3 UK passive income stocks to consider

Searching for ways to supercharge your passive income with UK dividend stocks? Here are three that have grabbed our writer's…

Read more »

Young Caucasian woman at the street withdrawing money at the ATM
Investing Articles

£10,000 invested in NatWest shares at the start of 2025 is now worth…

NatWest shares surged into 2025, but things have become a little more complicated in recent weeks. Dr James Fox explores.

Read more »

Investing For Beginners

Why the FTSE 250 could outperform the FTSE 100 for the rest of the year

Jon Smith explains why the FTSE 250 could do better than its big brother when factoring in domestic exposure and…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

Tariff fears send the Lloyds share price tumbling, but the dividend yield is climbing

Just when the Lloyds Banking Group share price had been rising steadily, along comes a global upheaval to knock it…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

Here’s how a stock market crash could help an investor retire years early

A stock market crash can be alarming -- but for the well-prepared investor, it can also be an exceptional opportunity…

Read more »

Investing Articles

1 key fact to remember in this stock market correction

This writer takes a look at a FTSE 100 investment trust that is catching his eye after the recent massive…

Read more »

Investing Articles

I was wrong about the Tesla stock price!

Tesla stock's been affected more than most by ‘Liberation Day’. But our writer has other concerns about Elon Musk’s company.

Read more »