Whether or not the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expensive or not is a matter of fierce debate for many investors. Compared to the US markets I would say it is actually reasonably cheap, making it a great time to invest.

But for those that are concerned that it is getting a touch expensive I have picked out three shares which I believe are looking cheap now. They are as follows:

Australian Pharmaceutical Industries Ltd (ASX: API)

Australian Pharmaceutical Industries is the the owner and operator of the popular Priceline, Soul Pattinson, and Pharmacist Advice brands, as well as being a distributor to pharmacies across the country. In its half year results the company delivered underlying net profit after tax growth of 18.1% to $25.3 million. This was driven by a strong performance from its Priceline brand, as well as a reduction in operating costs as a percentage of sales.

Management plans to add to its 425 stores by opening a further 20 stores this year. Due to the market being largely fragmented, I see this level of growth as sustainable for a number of years to come. I believe this should go some way to helping the company continue its strong performance which has seen it grow earnings by an average of 11% per annum for the last five years. According to CommSec its shares are changing hands at 17x estimated full year earnings, making it a cheaper alternative to its rival Sigma Pharmaceutical Limited (ASX: SIP).

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The regional bank is the cheapest of all Australian banks based on book value. At present Bendigo and Adelaide Bank shares are priced at a lowly 0.9x book value or 1.3x tangible book value, which in my opinion makes it one of the best options available to investors looking for exposure to the banking sector.

As well as being relatively cheap, the shares are expected to provide a market-beating dividend next year. According to CommSec, analysts have forecast it to pay a fully franked 6.8% dividend next year based on the current share price.

Orora Ltd (ASX: ORA)

Orora has been one of the best-performing shares on the S&P/ASX 200 since the packaging company demerged from Amcor Limited (ASX: AMC) in 2013, rewarding its shareholders with a huge 135% share price gain. Despite these strong gains I still feel the shares are great value now at just at 1x sales, compared to Amcor’s 1.5x sales.

The company posted a 14% increase in sales and a 27% increase in net profit after tax in its half year results. Given it has around 44% of its sales deriving from North America, a weakening Australian dollar could prove to be a boost to its top-line growth that helps sustain this strong performance for a while yet.

Finally, if you do plan on adding API, BEN, or ORA to your portfolio I would highly recommend that you check to see if you own one of these three rotten ASX shares first. Each could be harming your portfolio, so what better time to swap it out?

3 Rotten Shares to Sell, and 1 to Buy Today

After a double-digit rally for the ASX since 2016 lows, investors should be on high alert. You'll find a full rundown below of 3 shares we think you should avoid today plus one top pick worth buying, even if the market turns south and the RBA keeps rates at an "emergency low." Simply click here to uncover these stocks.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. 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.