Plenty of ASX shares have taken a beating this year because of worries about various impacts like AI, energy prices, inflation, interest rates and so on. During times like this, I think we can find great opportunities.
I think one of the easiest ways to invest during difficult periods is to invest in growing businesses where the price/earnings (P/E) ratio has reduced but earnings are likely to climb in the medium-term.
So, let's dive into two of the most attractive S&P/ASX 300 Index (ASX: XKO) shares.
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TechnologyOne Ltd (ASX: TNE)
TechnologyOne describes itself as Australia's largest enterprise software company, with a global presence. It has more than 1,300 leading subscribers across corporations, government agencies, local councils and universities.
Since October 2025, the TechnologyOne share price has dropped around 35%, despite the company continuing to very pleasing financial growth as it expands its offering with additional modules, AI inclusions and so on.
In FY25, it reported revenue growth of 18% to $610 million and net profit after tax (NPAT) growth of 17% to $137.6 million. It also reported its research and development (R&D) investment was $153.7 million, 25% of total revenue.
The R&D spending is a key driver for the ASX share to unlock additional revenue growth from its subscribers, helping it deliver its targeted revenue growth of 15% from its existing client base each year.
It's winning new clients, with UK growth particularly exciting because of the large market and similarities to Australia.
In FY26, it's expecting to grow its profit before tax by between 18% to 20% in FY26. That's a great tailwind for sending the TechnologyOne share price higher.
According to the forecast on Commsec, the TechnologyOne share price is valued at 52x FY26's estimated earnings.
Australian Ethical Investment Ltd (ASX: AEF)
Australian Ethical describes itself as one of Australia's leading ethical investment managers. The company said it aims to provide investors with investment management products that align with their values and provide long-term returns.
With funds under management (FUM) of $14 billion, the business is exposed to share market movements. But, the 45% decline of the Australian Ethical share price over the last six months seems harsh considering the good numbers it's reporting and long-term growth tailwinds.
Historically, asset prices have climbed over the long-term, which is a tailwind for the company's earnings. Plus, it offers superannuation to Australians, so the company is experiencing regular net inflows from members.
In the FY26 half-year result, the business reported underlying revenue growth of 13% to $65.8 million, while underlying profit after tax increased 25% to $14.4 million.
I'm expecting the ASX share can continue to deliver rising profit margins because of how scalable funds management businesses are. As an example, it doesn't take 10% more staff or a 10% bigger office to manage 10% more FUM.
It's now trading at just 24x FY25's earnings, which looks like great value to me considering how fast its profit is rising.
