I think there are some great ASX shares out there that are worth buying in a heartbeat.
Some tech shares like Altium Limited (ASX: ALU) and Pro Medicus Limited (ASX: PME) are great businesses, but I think the market fully understands the potential – that's why they trade on such a high price/earnings ratio.
However, there are some ASX shares that still look really good value to me:
City Chic Collective Ltd (ASX: CCX)
City Chic is a plus-size fashion retailer of clothes, footwear and accessories.
The City Chic share price dropped 6.5% yesterday and it has actually fallen by 29% since 18 August 2020.
The company has been losing investor sentiment since it said that it hadn't won the Catherines auction. Catherines was a US retailer that was in financial trouble and was sold to a prospective buyer.
Whilst it was disappointing that the ASX share didn't win the auction. I think there's a couple of things to think about the failed bid. I think it was a good sign that City Chic didn't want to overpay – it shows that management respect shareholder capital.
The other thing to remember is that the company still sees other opportunities to add to its collective and take more market share. City Chic could soon put that money from the capital raising to work, sooner than expected.
But it's the organic growth I'm most excited about with this ASX share. City Chic sells a good proportion of its products to the northern hemisphere, which is a huge market. It also sells a lot of products online. Those are attractive attributes about the ASX share in my opinion.
At the current City Chic share price it's valued at 17x FY23's estimated earnings.
Pacific Current Group Ltd (ASX: PAC)
Pacific Current describes itself as a global multi-boutique asset management business committed to partnering with exceptional investment managers. It combines capital with strategic business development to help businesses grow.
Pacific is invested in a number of interesting fund managers. Some of them are growing very well. For example, in FY20, fund manager GQG grew its funds under management (FUM) by 78% in one year from US$25.1 billion to US$44.6 billion.
Indeed, Pacific's FUM has been growing strongly recently. In FY20, excluding investments sold and acquired, Pacific's FUM grew by 52% to $93.3 billion.
That FUM growth and asset gathering efforts was impacted by COVID-19. This ASX share has a lot of growth potential. In FY20 alone it grew its underlying earnings per share (EPS) by 18%.
Pacific thinks its boutiques are well positioned to secure new commitments from investors in FY21 as institutional investor activity resumes. Not only that, but the company thinks it will be able to deploy capital into new, diversifying investments in FY21.
I think there is a lot to like about this ASX as its underlying earnings could compound nicely over the next few years.
At the current Pacific share price it's valued at 9x FY23's estimated earnings. It also offers a grossed-up dividend yield of 8.1%.
Foolish takeaway
I think both of these ASX shares look really good value when you just look ahead a couple of years. City Chic is continuing on its path to becoming a global leader in plus-size fashion, so I think it's worth being along for the ride.
Pacific has had a volatile history. But I think it's on a good path now and continues to see strong underlying growth. I think it can offer exposure to the theme of people looking for return (from fund managers) in a world of low interest rates. I believe Pacific is a solid option for total returns.
