The S&P/ASX 200 Index (ASX: XJO) is hovering around record highs again on Friday.
On the surface, that can make it feel like everything is expensive. The banks are trading near peak valuations. The major miners have rebounded strongly. Some high-quality industrials look fully priced.
But a record index does not mean a fully priced market. It often just means value options have narrowed.
Right now, I think there are still pockets of genuine value on the ASX. You just have to look beyond the obvious.
Here's where I'm seeing opportunity.
Image source: Getty Images
The healthcare sector
One of the clearest areas of value, in my view, is healthcare.
High-quality global businesses have been sold off over the past couple of years due to earnings resets, temporary headwinds, or sentiment shifts. But structurally, their long-term growth drivers remain intact.
Take CSL Ltd (ASX: CSL).
It has not been a smooth ride for shareholders recently. But plasma collection volumes have improved, margins are on the path to recovery, and the company continues to invest in its pipeline. The share price de-rating means the risk-reward profile looks far more attractive than it did at the peak.
I also think Cochlear Ltd (ASX: COH) fits into this bucket. Hearing loss is a major problem globally, and Cochlear's world-class products give it a powerful competitive advantage. Structural demand, global exposure, and strong cash generation at a reasonable multiple? That's the kind of value I look for at record market highs.
The tech sector
Another area I still see value is among tech stocks that have been punished in 2026.
The index may be at record highs, but plenty of former high-flyers are still well below their peaks.
For example, WiseTech Global Ltd (ASX: WTC) has endured a significant pullback due to company-specific issues and slowing growth in its core business. However, the long-term opportunity in global logistics software remains large. If earnings reaccelerate over the next couple of years, today's valuation could look conservative.
Similarly, Xero Ltd (ASX: XRO) continues to build scale globally. It's no longer priced for perfection like it once was. For a business with strong recurring revenue, global expansion potential, and improving margins, I think it still offers compelling long-term value relative to its quality.
Infrastructure and defensive earnings
If the ASX 200 is expensive, I also want resilience.
Infrastructure-style assets with predictable cash flows can still make sense, even when the index is elevated.
Transurban Group (ASX: TCL) is one example. It owns long-life toll road assets across Australia and North America, many with inflation-linked pricing mechanisms. That provides a built-in buffer against rising costs and economic uncertainty.
When I can buy defensive, cash-generating assets that have visible revenue streams, I am less worried about the broader index level.
Foolish Takeaway
A record high ASX 200 Index doesn't mean it's time to panic. It just means you need to be selective.
I'm less interested in chasing crowded trades at premium valuations. Instead, I'm focusing on high-quality healthcare names that have already de-rated, structural growth businesses trading below prior peaks, and defensive infrastructure assets with predictable cash flow.
Value still exists. It just isn't necessarily where the headlines are pointing.
