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The FTSE 100 has loved a strong run in 2025 to date, 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, whilst their financials and share costs present indicators of restoration.
By specializing in basic valuation metrics just like the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-earnings development (PEG) ratio, buyers can determine high quality firms buying and selling under their perceived price.
Listed here are two low cost FTSE 100 shares that I consider buyers 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 supplied analogue and digital communication providers throughout the nation for nearly 180 years. After a protracted interval of underperformance, the shares have staged a comeback in 2025, rising 34% this 12 months 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 buyers are paying lower than £1 for each £1 of income — an encouraging signal for worth seekers.
BT’s additionally proving engaging for earnings buyers, 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, buyers 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 value controls and the large capital expenditure required for full-fibre broadband rollouts. These components might restrict how a lot shareholder worth it will possibly return within the close to time period.
Nonetheless, for worth buyers, I really feel it’s one of the crucial promising-looking shares on the Footsie proper now.
Centrica
Centrica (LSE: CNA), the dad or mum firm of British Gasoline, operates in vitality provide, buying and selling and storage. Shares have risen 13% in 2025, presently 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 movement ratio stands at 7.37. These figures counsel the market has but to totally value in Centrica’s improved fundamentals.
It additionally boasts a superb working margin of 28.3% and an excellent 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 underneath management, with a D/E ratio of 0.78.
As at all times, dangers stay. Centrica’s uncovered to risky vitality markets, political scrutiny over pricing and the transition to renewable vitality, which can require large-scale funding within the years forward.
General, I believe each shares are presently undervalued, with an excellent likelihood of ending this 12 months larger.
