Although I think the shares of Domino's Pizza Enterprises Ltd (ASX: DMP) and Ramsay Health Care Limited (ASX: RHC) have fallen to a level that makes them great value, for some investors their valuations are still a little rich.
So if Domino's and Ramsay are not for you at this time, maybe the three shares listed below will be. I think that these shares could be classed as being dirt cheap at their current share prices. They are as follows:
RCG Corporation Ltd (ASX: RCG)
At the current price this footwear retailer's shares are changing hands at just 11x earnings and provide investors with a generous trailing fully franked 7.5% dividend. While trading conditions remain weak and the retail industry may soon be disrupted by Amazon, I think RCG provides a solid risk/reward that makes it worth considering. Especially with management confident that it will deliver another year of profit growth in FY 2018.
Super Retail Group Ltd (ASX: SUL)
Super Retail is the company behind brands such as Supercheap Auto and Rebel Sport. Like RCG, it will have to contend with subdued trading conditions and Amazon's entry into the market in FY 2018. But with its shares trading at 12x trailing earnings and management advising of strong like-for-like sales growth so far in FY 2018, I think it is well worth considering as an investment. A further bonus is its dividend, which offers a trailing 5.6% yield at present.
Telstra Corporation Ltd (ASX: TLS)
This telco giant's shares recently fell to a five-year low amid concerns over NBN margins, future growth plans, and its ability to maintain its proposed 22 cents per share dividend. This has left its shares changing hands at below 10x trailing earnings. While it certainly is not a low risk investment anymore, I believe that all the bad news has been factored into its share price now. This could therefore be an opportune time to snap up its fully franked 6.3% FY 2018 dividend.
