A number of quality shares such as Nextdc Ltd (ASX: NXT) and Altium Limited (ASX: ALU) have stormed to all-time highs today.
Unfortunately, this means that their respective shares are changing hands on sky high multiples. While I think they are worthy of the premium, not all investors are comfortable with this.
Because of this I have picked out a couple of cheap ASX shares which I think could be in the bargain bin. They are as follows:
RCG Corporation Ltd (ASX: AX1)
The shares of RCG Corp, now known as Accent Group, may have risen 49% in the last six months, but they are still priced at just 12x trailing earnings. I think this is cheap given the footwear retailer's growth outlook. Furthermore, although there are concerns that Amazon will be a threat, it is worth noting that a significant portion of its revenue is generated from its licensed brands. This should offer some protection from the retail behemoth.
TPG Telecom Ltd (ASX: TPM)
Although it isn't necessarily my first choice in the telco sector, there's no denying that TPG Telecom looks cheap at under 15x estimated forward earnings. While FY 2018 might prove to be weaker than normal due to higher levels of capex, I believe the company will ultimately reap the rewards of the investments it is making this year. This could make it a good option for patient investors.
