ASX growth shares can generate some of the strongest returns over time, but there can be plenty of volatility along the way. I'm going to highlight two companies that have exciting futures and whose recent valuation declines have made them appear better value.
It's normal for fast-growing businesses to sometimes experience a bump. There have been numerous sell-offs, for example, of Amazon and Microsoft shares over the last 30 years. Those dips were opportunities.
I'm not expecting the following two businesses to do as well as the US tech giants, but the future looks positive for these stocks.
Image source: Getty Images
Pro Medicus Ltd (ASX: PME)
Pro Medicus is one of the most impressive ASX growth shares, in my view. It provides a full range of medical imaging software and services to hospitals, imaging centres, and healthcare groups in Australia and internationally.
The company is winning a lot of new contracts, which is driving its earnings higher at a rapid rate. In this month alone, it has announced multiple contracts worth a total of $73 million. Large clients are clearly loving what they're seeing with the offering.
This new revenue is extremely valuable to the business because it has an underlying operating profit (EBIT) margin of 74% (as of FY25). That means almost three-quarters of revenue is turning into EBIT, which is a very high proportion. This is helping drive the bottom line and dividends to higher levels at a growth rate of more than 30% (in FY25).
Its FY25 revenue rose 31.9% and it seems the company is set to deliver further strong growth for the foreseeable future.
The ASX growth share still has a high price-to-earnings (P/E) ratio, but it appears considerably cheaper after the Pro Medicus share price declined by 20% since July, as the chart below shows.
Temple & Webster Group Ltd (ASX: TPW)
This company sells homewares and furniture online. The ASX growth share took a hammering yesterday after delivering a trading update that didn't live up to expectations. I think this is a long-term buying opportunity.
Revenue between 1 July 2025 and 20 November 2025 grew by only 18% year over year, compared to the 28% growth achieved between 1 July and 11 August 2025. It's clear there has been a major slowdown since August.
However, the company has a long history of delivering strong growth, so I believe this is just a temporary hit for the ASX growth share rather than a permanent situation.
For starters, the overall Australian furniture and homewares market only recently reached 20% online penetration. In the US and UK markets, online penetration has climbed to 29% and 35%, respectively, suggesting a further increase in e-commerce adoption by shoppers.
With 18% revenue growth for the financial year to date, the company is still gaining market share, giving it more market power and economies of scale.
The business noted a number of other positives in its AGM update – it's starting to ship products to New Zealand, its home improvement revenue rose over 40% year over year, and the trade and commercial revenue increased 23% year over year.
I'm expecting the company's revenue to be significantly higher in five years, and the profit margins should climb thanks to operating leverage and specific efforts the ASX growth share is making to improve efficiencies, leverage AI, and enhance technology across the business.
