Here's one of my favourite cheap shares to consider buying today

I reckon this stock is far too cheap and also offers huge passive income.

The ASX share market is awash with opportunities and there are plenty of cheap shares to consider buying, in my opinion. One business I really want to highlight is Bailador Technology Investments Ltd (ASX: BTI).

Bailador describes itself as a growth technology company that's focused on the IT sector.

Some of the areas that it's looking at include software as a service (SaaS) and other subscription-based internet businesses, online marketplaces, software, e-commerce, high-value data, online education and tech-enabled services.

It has 11 different investments like Updoc, DASH, Access Telehealth, Expedition Software, Siteminder Ltd (ASX: SDR), PropHero, Rosterfy, Hapana, MOSH and Nosto.

Those businesses operate in areas like digital healthcare, hotel channel management and distribution solutions for online accommodation bookings, a booking software platform for tours and activities, property investment, volunteer management, fitness and wellness sector software and so on.

Smiling couple looking at a phone at a bargain opportunity.

Image source: Getty Images

Strong growth

Bailador isn't just a tech company for the sake of it – these underlying businesses are growing at a strong rate.

In the FY26 half-year result, Bailador reported that 85% of its portfolio revenue is in high-quality recurring revenue, which shows the defensiveness and quality of the revenue generated by these businesses.

Excitingly, Bailador reported that its portfolio reported combined revenue of $673 million, with (portfolio-weighted) revenue growth of 42% over the last 12 months.

With its investments growing revenue by that much, the underlying businesses are rapidly increasing their underlying value and also helping improve their underlying margins because of the operating leverage of software (with typically high gross profit margins and relatively low variable costs).

Why this looks like a cheap ASX share

The business regularly tells investors how much it is worth with its net tangible assets (NTA).

At the end of February 2026, it had pre-tax NTA of $1.81 and post-tax NTA of $1.66. At the time of writing, Bailador's share price is valued at a 46% discount to the pre-tax NTA last month and a 41% discount to the post-tax NTA.

That's a big discount, though the underlying NTA has probably reduced in the last few weeks, but the discount is still probably in the 30s percentage range. This seems like a great time to buy considering how rapidly the businesses are growing.

Even if the Bailador share price doesn't recover to reflect its underlying value, it can provide investors with a very good level of dividend income for 'real' returns. Bailador noted in its recent February 2026 update that its grossed-up dividend yield was 9.2%, including franking credits.

I think this is a great time to invest in this cheap share for the long-term.

Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments and SiteMinder. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Bailador Technology Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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