3 ASX 200 value stocks I'd buy for my portfolio today!

These low p/e stocks could be the right place to hunt for opportunities.

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The S&P/ASX 200 Index (ASX: XJO) is full of interesting businesses, 200 of them! I think there are some ASX 200 value stocks that I'd rate as buys for my portfolio and, indeed, any investment portfolio.

We don't need to limit ourselves to ASX bank or mining shares for investing opportunities.

Companies with a low price/earnings (P/E) ratio can also be attractive because the market isn't expecting a great deal, and they can potentially offer an appealing dividend yield because of the low valuation.

With that in mind, here are three value investment ideas I really like the look of.

Bapcor Ltd (ASX: BAP)

Bapcor is one of the largest auto parts companies in the Asia Pacific region. Readers may recognise a number of its businesses, including Burson Auto Parts, Precision Automotive Equipment, BNT (NZ), Autobarn, Autopro, Midas, ABS, Shock Shop and Battery Town.

Bapcor also has a number of specialist businesses, including electric parts, as well as Truckline (for heavy commercial vehicles) and WANO (for light commercial vehicles).

Despite auto parts being a relatively defensive sector – vehicles regularly need fixing regardless of economic conditions – the Bapcor share price is down 26% from October 2023.

Its retail-focused businesses may see a reduction of demand if households rein in their spending in the current high cost-of-living environment. Plus, there has been pressure on its margins, partly because of inflation relating to its cost of doing business (CODB).

But, there continues to be a growing population and growing number of cars in Australia, which is a useful tailwind for longer-term demand and the company's earnings.

Using the projections on Commsec, the ASX 200 value stock is priced at 14x FY24's estimated earnings and under 12x FY25's estimated earnings. In FY25, it is forecast to pay a grossed-up dividend yield of 6.8%.

Metcash Ltd (ASX: MTS)

Metcash is a leading wholesaler, supplying businesses like IGA, Cellarbrations, The Bottle-O, IGA Liquor, Porters Liquor, Thirsty Camel, Big Bargain Bottleshop and Duncans. It also has a number of compelling hardware businesses, including Mitre 10, Total Tools and Home Timber & Hardware.

The ASX 200 value stock has done a good job of growing over the last few years, particularly with the acquisition of Total Tools.

I don't think Metcash's businesses are as solid as Coles Group Ltd (ASX: COL) or Bunnings, but those are the sorts of comparable companies.

Metcash and its partners continue to invest in their businesses, which can help their market position as well as costs. Investing in its logistics has been a recent focus.

According to the projections on Commsec, it's valued at less than 13x FY25's estimated earnings with a possible grossed-up dividend yield of 8.3% following a 16% decline over the past year.

Qantas Airways Limited (ASX: QAN)

Qantas has seen plenty of troubles over the last year – there's a reason why it's down over 22% from 24 July 2023.

I'm going to talk about a few reasons why this could be the right time to invest. For starters, it's already down a lot, so the valuation is accounting for the issues.

The oil price has fallen in the last few months, which is good news for the costs of the ASX airline share.

At the AGM in November, Qantas chair Richard Goyder said travel demand continued to be strong, and the balance sheet was "in excellent condition".

I think it's good news that travel demand is strong – it shows people are still willing to fly with the airline and that the demand can help earnings.

Despite the strong demand environment, the Qantas share price is valued at 5x FY25's estimated earnings and could pay a dividend yield of 5%, excluding the benefit of any franking credits.

Motley Fool contributor Tristan Harrison has positions in Metcash. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Bapcor and Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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