While I think that expensive shares like Nextdc Ltd (ASX: NXT) and Domino's Pizza Enterprises Ltd. (ASX: DMP) are great options for investors despite the lofty multiples their shares trade on, not all investors are comfortable with paying such a premium.
For those investors I have picked out two of my favourite shares which I think are dirt cheap. They are as follows:
Lifehealthcare Group Ltd (ASX: LHC)
Despite reforms to the Prostheses List, this medical device company recently reiterated its full-year guidance of high single to low double digit growth in revenue and earnings in FY 2018. Considering its shares change hands at under 16x trailing earnings, I think its shares are cheap given its current growth profile. An extra bonus is the trailing partially franked 5.2% dividend that they provide.
Super Retail Group Ltd (ASX: SUL)
Year-to-date Super Retail's shares have fallen over 19% due to weakness in the retail sector and concerns over the impact of Amazon's launch in Australia. While Amazon does pose a long-term threat to the company, I take heart from the fact that equivalent companies in the United States have managed to compete successfully. Furthermore, management has planned for its arrival for some time and the company appears well placed to continue its growth. So at just 11x trailing earnings and providing a trailing fully franked 5.6% dividend, its shares could prove to be a bargain buy.
