The only ASX200 growth shares that investors seem to be drawn towards these days are expensive tech shares like Afterpay Touch Group Ltd (ASX: APT), Altium Limited (ASX: ALU) and WiseTech Global Ltd (ASX: WTC).
But, I'm going to write about three ASX200 growth shares that I think are trading at very reasonable value for the growth on offer:
Webjet Limited (ASX: WEB)
According to estimates, Webjet is trading at under 20x FY19's estimated earnings. I think this is a very reasonable price considering in FY18 the domestic Webjet business grew revenue by 20% and earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 36%. In total, Webjet's FY18 EBITDA grew by 71%.
The travel business is going very well.
The recent Destinations Of The World acquisition substantially increased the WebBeds scale to make it the number two B2B player in the world. The acquisition is calculated to add more than 20% to pro-forma earnings per share (EPS) after synergies in FY19 alone.
It's hard to find this amount of international growth for a reasonable price in the ASX200.
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat Leisure is trading at just over 19x FY19's estimated earnings. The social gaming business reported normalised operating growth of 47.7%, normalised net profit growth of 24.6% and a full year dividend increase of 35.3% in FY18.
Solid organic growth is expected to continue in FY19, with pleasing contributions from its acquisitions. A fall in the effective tax rate could improve the bottom line even quicker than the operating earnings growth. New digital game releases could drive growth this year and beyond.
Challenger Ltd (ASX: CGF)
Challenger is the clear market leader of annuities in Australia, it helps turn a retiree's capital into a guaranteed source of income.
Whilst the recent fall in share price was not good, it means returns are starting from a lower base. There is a strong tailwind with the growing number of people entering the retirement phase of their lives. The number of people over 65 is expected to grow by 40% during the next decade.
It's now trading at only 11x FY20's estimated earnings.
Foolish takeaway
All three ASX200 shares could easily beat the market over the next few years, with their growing dividends as a bonus.
