Are these the best value tech shares on the ASX?

Although I think that Afterpay Touch Group Ltd (ASX: APT) and WiseTech Global Ltd (ASX: WTC) could prove to be very rewarding long-term investments, due to their sky-high valuations I can completely understand why some investors may not be comfortable buying their shares.

The good news is that not all tech shares trade on nosebleed multiples.

Three top tech shares that I believe trade on reasonable valuations given their strong growth prospects are listed below. Here’s why I like them:

Appen Ltd (ASX: APX)

Appen is a leading provider of data used for the development of machine learning and artificial intelligence products. These markets are expected to grow at an explosive rate over the next decade, putting Appen in a strong position to profit greatly. And while its shares have been on fire over the last 12 months, I believe they still trade at a reasonable level. Based on a note out of Citi at the end of August, Appen’s shares are changing hands at just 24x estimated FY 2019 earnings.

Bravura Solutions Ltd (ASX: BVS)

Bravura is a provider of software solutions for the wealth management, life insurance, and funds administration industries. Strong demand for its Sonata wealth management product led to the company reporting a 27% increase in underlying net profit after tax to $27 million in FY 2018. According to a note out of Macquarie at the end of August, it expects earnings per share growth of 17% this year to 14.7 cents. Based on this estimate, its shares are priced at 30x forward earnings.

Citadel Group Ltd (ASX: CGL).

Citadel is a leading software and services company that specialises in information management. Its key product is its Citadel-IX cloud-based enterprise information management platform which allows users to securely access and transfer proprietary and sensitive information remotely. Based on its strong FY 2018 results, Citadel’s shares are trading at 27x earnings at present. I think this is great value given its solid long-term growth prospects.

And don't miss out on these hot stocks that have been tipped for big things in 2019.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2019

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO, Appen Ltd, Bravura Solutions Ltd, Citadel Group Ltd, and WiseTech Global. 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 Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!