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The FTSE 100 has loved a strong run in 2025 to this point, 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, at the same time as their financials and share costs present indicators of restoration.
By specializing in traditional valuation metrics just like the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-earnings development (PEG) ratio, traders can establish high quality firms buying and selling under their perceived price.
Listed here are two low cost FTSE 100 shares that I consider traders ought to contemplate 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 offered analogue and digital communication companies throughout the nation for nearly 180 years. After a protracted interval of underperformance, the shares have staged a comeback in 2025, rising 34% this yr 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 traders are paying lower than £1 for each £1 of income — an encouraging signal for worth seekers.
BT’s additionally proving enticing for revenue traders, with a dividend yield of 4.2% and a sustainable payout ratio of 75.7%. Operationally, the corporate’s on strong floor, posting an working margin of 16.3% and a return on fairness (ROE) of 8.3%.
Nonetheless, traders 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 worth controls and the huge capital expenditure required for full-fibre broadband rollouts. These components could restrict how a lot shareholder worth it might return within the close to time period.
Nonetheless, for worth traders, I really feel it’s some of the promising-looking shares on the Footsie proper now.
Centrica
Centrica (LSE: CNA), the guardian firm of British Fuel, 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 move ratio stands at 7.37. These figures counsel the market has but to completely worth in Centrica’s improved fundamentals.
It additionally boasts a superb working margin of 28.3% and an outstanding 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 beneath management, with a D/E ratio of 0.78.
As at all times, dangers stay. Centrica’s uncovered to unstable vitality markets, political scrutiny over pricing and the transition to renewable vitality, which can require large-scale funding within the years forward.
Total, I feel each shares are at present undervalued, with a very good likelihood of ending this yr greater.
