If you’re an ASX investor looking for 3 blue-chip value plays, ResMed Inc. (CHESS) (ASX: RMD), Flight Centre Travel Group Ltd (ASX: FLT) and Telstra Corporation Ltd (ASX: TLS) should be on your watchlist.

Indeed, each company is dominant in its respective industry, has a strong capital base and brand, and could be expected to grow modestly for some time, allowing it to be considered a ‘blue chip’. Importantly, shares in each company appear to trade below fair value.

ResMed Inc.

ResMed Inc. is the leading manufacturer of medical devices for the treatment of obstructive sleep apnea and other related respiratory disorders. While ResMed is consistently being challenged by the likes of Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) and Philips Respironics, it is a leader in a very lucrative and growing industry. While investors should be vigilant to how competition and currency movements impact upon its profit margins, Credit Suisse analysts recently lifted their ResMed share price target to $8.80. Currently, ResMed shares change hands for $7.75.

Telstra Corporation

Telstra isn’t your everyday value play. Rarely does a popular blue-chip stock like Telstra go so far below its estimated fair value to make it a bargain. However, shares in Australia’s leading telecommunications provider appear to be making their way towards a compelling value level given its recent underperformance. Of the 16 analysts surveyed by Reuters, eight have a ‘hold’ rating on Telstra shares while four have an underperform and four are bullish.

I’ve said it before but it doesn’t matter whether you’re buying a $63 billion company like Telstra or a speculative miner in the desert, it’s imperative you get a margin of safety (or value) between what you think a share is worth and what you can buy it for.

Flight Centre Travel Group 

Flight Centre is synonymous with travel in Australia. Despite the advancement of digital booking systems and do-it-yourself apps to help you travel, Flight Centre has continued its national and global physical store rollout to great effect. The company’s experienced management team, workplace culture and flexible balance sheet have enabled it to be a great performer for investors’ portfolios.

With its global expansion underway, the ultimate success of which is yet to be determined, Flight Centre shares look to be trading slightly below fair value.

Foolish takeaway

Each of these three blue-chip shares trade below fair value in my opinion. However, none of them are a ‘bargain’ because none of them deviate far enough from their intrinsic worth. Nonetheless, if you have a long-term (i.e. five years of more) holding period, it may be worth adding ResMed Inc. shares to your portfolio.

Personally, at today's prices, I'd rather look for other - faster growing - dividend shares to add to my portfolio, such as the one The Motley Fool's expert analysts hand-picked as their best dividend share idea for 2016.

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Motley Fool Contributor Owen Raszkiewicz owns shares of ResMed and has a financial interest in Flight Centre Travel Group Ltd. Owen welcomes -- and encourages -- your feedback on Google+, LinkedIn or you can follow him on Twitter @ASXinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.