Attention value investors: These ASX shares could be very cheap

Here's why I think Accent Group Ltd (ASX:AX1) and this ASX share could be cheap and great options for value investors right now…

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A number of shares such as Afterpay Ltd (ASX: APT) and Kogan.com Ltd (ASX: KGN) have recorded incredible gains for investors this year.

Unfortunately, this means they are now trading on higher than normal valuations. While I still believe they could be great long term options, they're largely unsuitable for value investors.

The good news, though, is that not all shares are trading at a premium. In fact, some could even be described as cheap at current levels.

Here are two ASX shares which I think would be good options for value investors:

Accent Group Ltd (ASX: AX1)

I think Accent Group is a great pick for value investors. It is the retail company behind brands such as The Athlete's Foot, Platypus, and HYPE DC. It is also the distributor of a number of popular brands such as Vans, Timberland, Dr Martens, and Skechers.

While certain areas of the retail sector have struggled during the pandemic, lifestyle footwear certainly hasn't been one of them. Accent Group reported strong sales and profit growth in FY 2020 thanks to its in-demand products and strong online business.

Looking ahead, I believe the company is well-placed for growth over the coming years thanks to its online business, popular brands, and its store expansion plans.

In FY 2021, I expect the company to pay a 9 cents per share fully franked dividend. Based on the current Accent share price, this will be a 4.9% yield. I also estimate that it will achieve earnings per share of 11.1 cents this year. This means you'll be paying 15x earnings to buy its shares today.

People Infrastructure Ltd (ASX: PPE)

Another ASX share for value investors to look at is People Infrastructure. It is a leading workforce management company that provides innovative solutions to workforce challenges.

Despite being impacted by the pandemic, People Infrastructure was a positive performer in FY 2020. It delivered a sizeable 49.2% year on year increase in normalised EBITDA to $26.4 million

And while it hasn't been able to provide guidance for FY 2021, management remains focused on driving growth both organically and inorganically. I'm expecting earnings per share of 21.7 cents in FY 2021. This means its shares are changing hands for a very attractive 15x forward earnings today.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Accent Group, Kogan.com ltd, and People Infrastructure Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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