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Are these the FTSE 100’s best bargains?

Today I’m looking at four FTSE 100 (INDEXFTSE: UKX) stars offering irresistible value.

Package up a bargain

With the online shopping phenomenon still picking up pace, I reckon Royal Mail (LSE: RMG) is in great shape to generate splendid returns in the years ahead. And investors can look forward to exploding parcel volumes both at home and abroad — the courier operates across more than three dozen countries.

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The City expects earnings at Royal Mail to move 3% and 5% higher in the years to March 2017 and 2018, respectively, creating very attractive P/E ratios of 11.9 times and 11.3 times. These figures obliterate the FTSE 100 average of 15 times by some distance.

And dividend yields of 4.5% and 4.7% for these years should attract serious attention from income chasers.

Travel titan

Concerns over the impact of terrorism in key destinations has shaken the travel sector in recent weeks, a factor that has sent TUI Travel’s (LSE: TUI) share value spiralling lower.

Of course this issue merits serious attention from investors. But I reckon the impact of robust economic conditions on holidaymakers’ wallets — combined with the fruits of massive restructuring — still makes the travel operator a great stock bet.

Indeed, TUI Travel is expected to report earnings growth of 7% in the year to September 2016, creating a P/E rating of just 12.6 times. And the multiple drops to just 11 times for 2017 thanks to an anticipated 15% bottom-line bump.

Meanwhile, dividend yields of 4.8% and 5% for this year and next smash the big-cap forward average of 3.5%.

Plug in

Surging demand for BT Group’s (LSE: BT-A) broadband and television services continues to power revenues growth at the firm’s Consumer division. And I expect massive investment in its fibre network to keep driving surfer demand through the roof.

The impact of this colossal investment is expected to push earnings at BT 10% lower in the year to March 2017. Still, this leaves the telecoms titan dealing on a P/E rating of just 13.9 times. And an anticipated 8% earnings rebound in 2018 nudges the multiple to a mere 12.6 times.

On top of this, predictions of exploding profits are expected to drive the dividend from 3.8% this year to a splendid 4.3% in 2017.

Bless the gains down in Africa

I believe the exciting emerging regions of Africa make Old Mutual (LSE: OML) an exceptional stock candidate. Surging wealth levels in these regions — and particularly in South Africa — should drive financial product demand in the years ahead, with planned restructuring bolstering the insurer’s sales prospects still further.

In the meantime, the number crunchers expect earnings at Old Mutual to fall 8% in 2016 before bouncing 9% next year. Consequently the financial play deals on P/E ratings of just 10 times and 9.2 times.

And dividend yields of 4% and 4.5% for these periods seal the investment case, in my opinion.

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Royston Wild has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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