Some of the ASX's leading growth shares are trading at attractive value, according to Australia's top brokers.
Businesses that are growing their revenue at a fast pace over the long term have the potential to become much bigger over many years, thanks to the power of compounding.
These two ASX shares are rated as buys by brokers.
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EML Payments Ltd (ASX: EML)
EML describes itself as an innovative payment solutions platform. Whenever money is in motion, its technology can power that payment process so that money can be moved quickly, conveniently and securely.
It's currently rated as a buy by the broker UBS with a price target of $4.55. That implies an upside of more than 50% over the next year. UBS likes the longer-term growth potential of the recent announcement with Up Spain.
EML Payments has entered the employee benefits market in Europe, covering meal vouchers and employee benefit solutions. The initial move is a multi-year agreement with Up Spain. Europe represents 35% of the employee benefits market worth over $88 billion, of which Up Spain is one of the three biggest providers in Spain. This program is due to go live in FY23.
The ASX growth share will work to have this contract act as the basis for potential future growth in this segment within Spain and, in time, countries outside of Spain. Up Spain is a subsidiary of Up Group, which offers employee benefits and incentive programs across 28 countries including France, Germany, Italy and Poland.
In the first half of FY22, EML reported revenue growth of 20% to $114.4 million. FY22 total revenue is expected to be between $230 million to $250 million.
Temple & Webster Group Ltd (ASX: TPW)
Temple & Webster is a leading online retailer of homewares and furniture. It wants to become the biggest player in the sector, online or offline.
The company is also looking to expand in the 'home improvement' sector. That includes products like tools and equipment, garden and landscaping, paint and supplies, window furnishings, flooring, plumbing fixtures and so on. It's a $16 billion market opportunity in that less than 5% of the home improvement sector has moved online.
The Temple & Webster share price has dropped 37% since the start of 2022. However, its revenue continues to grow quickly. FY22 half-year revenue grew 46%. In the second half of FY22 to 6 February 2022, revenue was up another 26%.
The ASX growth share is re-investing heavily for growth in marketing, technology development, product range and the overall customer experience to keep growing the business.
Increased scale will help with profitability, including cost advantages in product sourcing, logistics and marketing.
Over the long term, the company is expecting more of a structural shift to online shopping for its core furniture and homewares market.
Further, the company is going to invest in its 'next horizon' growth businesses, such as international expansion.
