At a time when the stock market is trading close to its all-time high, I think there are a few ASX shares that are trading far too cheaply.
There are several reasons why many share prices have reached high valuations, including falling interest rates and higher earnings.
But, there are still some names that are trading at valuations that look good value. I'd call them bargain buys, so let's get into those stocks.
GQG Partners Inc (ASX: GQG)
GQG is a fund manager that's headquartered in the US and has a presence in multiple other countries including the UK, Australia and Canada.
In the last six months, the GQG share price has fallen by around 20%, as the below chart shows. I think this could be the right time to consider the business, given that investor confidence is lower following a couple of months of net outflows of funds under management (FUM).
But, I think it's important to recognise the significant progress the fund manager has made over the years, rather than just focus on the last couple of months. At 30 June 2024, it had FUM of US$155.6 billion, at 31 July 2025 it had US$166.5 billion of FUM, and this rose to US$167.6 billion as at 31 August 2025.
Even though the business saw US$1.8 billion of net outflows during August 2025, the company still saw FUM rise by US$1 billion thanks to the investment performance of its funds.
Time will tell whether the outflows are a long-term trend or a short-term issue. But, the GQG share price has fallen far more than I'd say is reasonable for the outflows.
If the ASX share were to earn the same earnings per share (EPS) in the second half of FY25 as the first half and declare the same dividend for the second half, it would mean it's trading at approximately 7x earnings with a dividend yield of 13%. GQG could deliver a market-beating return just from the dividend payments if FUM can be maintained.
At this valuation, any medium-term FUM/earnings growth could be a significant catalyst. I'm not surprised GQG talisman Rajiv Jain has bought shares recently.
Dexus Industria REIT (ASX: DXI)
The other ASX share I want to highlight is this real estate investment trust (REIT) that owns a diversified portfolio of industrial warehouses across Australian cities. It aims to provide sustainable income and capital growth prospects for investors over the long-term.
During this period of interest rate cuts by the Reserve Bank of Australia (RBA), I believe property, including commercial property, is looking increasingly attractive.
I'm not surprised the Dexus Industria REIT unit price has climbed 10% in the last six months.
Despite the gains, the business still looks undervalued. It reported net tangible assets (NTA) of $3.34 at 30 June 2025. At the time of writing, it's trading at a discount of 12.5% to the NTA. With the potential for one or more rate cuts in the next 12 months, I think this is a great time to consider the ASX share.
Ongoing rental income growth from tailwinds like e-commerce could also help future rental earnings.
It's expecting to grow its annual distribution to 16.6 cents per security in FY26, translating into a distribution yield of 5.7%.
