I love finding ASX value shares that look cheap and have compelling outlooks.
It's up to each investor to decide what counts as cheap, but there are a couple of valuation metrics where we can compare businesses.
I wouldn't decide to invest in a business just because it seems cheap, though. I'd want to see if there's underlying operational growth or operating profit improvement, which can help give investors more confidence in the business.
With that in mind, the two ASX value shares below look really cheap to me.
GQG Partners Inc (ASX: GQG)
GQG is one of the largest fund managers on the ASX. It's headquartered in the US and offers four main strategies: US shares, international shares, global shares, and emerging market shares. The company also offers some specific investment-focused funds, such as dividend shares.
For a fund manager, a reduction in the global share market is a short-term headwind for the funds under management (FUM). I think that's why we've seen the GQG share price fall 18% since 17 February 2025, as the chart below shows.
Over the long term, its main funds have outperformed their respective global benchmarks, which is useful for growing existing FUM and encouraging clients to add new money.
Inflows remain solid – in the month of February 2025, it achieved US$1.1 billion of net inflows. That's a good tailwind for overall FUM, revenue, profit, and dividend growth.
According to the forecasts on Commsec, the ASX value share is priced at less than 9x FY25's estimated earnings with a possible dividend yield of 10%. I think it's really cheap on a price-earnings (P/E) ratio basis.
Centuria Industrial REIT (ASX: CIP)
This business is a real estate investment trust (REIT) that owns industrial properties across Australia in key locations where there is a general shortage of commercial properties.
The business is exposed to a number of positive tailwinds, including ongoing e-commerce adoption, a growing Australian population, higher demand for refrigerated facilities (for food and pharmaceuticals), data centre demand, and so on. These are helping the rental potential of the properties.
While the business has suffered from higher interest rates (with higher debt costs and headwinds for property values), I think reducing interest rates by the RBA could be a significant tailwind for the ASX value share.
Every result, the business tells investors about its net asset value (NAV) – that's how much the assets are worth (like property) minus the liabilities (such as debt). At 31 December 2024, the business had a NAV per unit of $3.89. The price-to-book ratio – meaning the share price compared to the NAV – shows there's a 25% discount, which I think is very large and attractive for a business that owns a portfolio of compelling properties.
