The Australian share market may be near its record high, but that doesn't mean there aren't any cheap ASX shares out there.
For example, the two shares listed below could still be dirt cheap according to analysts.
Here's what you need to know about them:
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Endeavour Group Ltd (ASX: EDV)
The first cheap ASX share to look at is Endeavour Group. It is the owner of BWS and Dan Murphy's, along with a very large hotel network spread across Australia.
Its shares are down 28% from their highs and at a level that Goldman Sachs thinks is very attractive for investors. Particularly given its belief that concerns over a structural decline in alcohol consumption are unwarranted. It said:
Market concern over alcohol consumption structural decline overdone. […] Whilst per cap consumption volume has been on a downtrend (-1.6% 09-19), population growth, positive mix/price have driven industry growth. Whilst the Liquor category is currently challenged, we agree with management's focus on market share gain while keeping reasonable level of profitability.
Net net, we reiterate Buy on our continued believe in a high quality retailer gaining share amid a category down-cycle with a resilient growth option in Hotels. Company is trading at FY25 P/E of 17x vs historical average of 22x and WOW 22x, COL 21x.
Goldman has a buy rating and $5.10 price target on its shares. This implies potential upside of 23% for investors from current levels.
The broker also estimates that a 4.6% dividend yield is coming in 2025, boosting the total potential return closer to 28%.
GQG Partners Inc (ASX: GQG)
This boutique asset management company could be a cheap ASX share to buy right now after falling 30% from its high.
That's the view of analysts at Ord Minnett, which see significant value in its shares right now. They have described GQG Partners' valuation as compelling. The broker said:
GQG's latest update showed softer investment performance in December 2024, although performance over all other time periods remains very strong. Net flows were in line with Ord Minnett's expectations and similar to the prior month. The business remains in good shape and recent volatility in the share price, driven by the Adani-related corruption charges in the US, far exceeds the recent moderation in business performance, in our view. GQG's valuation remains compelling, leading us to reiterate our Buy recommendation.
Ord Minnett has a buy rating and $2.80 price target on its shares. This implies potential upside of 29% for investors over the next 12 months.
In addition, the broker estimates that its shares will provide a sizeable 9.5% dividend yield in 2025.
