The S&P/ASX 200 Index (ASX: XJO) is full of interesting ASX shares. Indeed, there are a few that look particularly good value after seeing some volatility this year. I don't think they're value traps either; instead, they could be great value ASX 200 shares.
Businesses that are among the best at what they do have a compelling opportunity to improve their market positions during this period of rising interest rates and high inflation.
No one can truly know what's going to happen next, but I think businesses with low price/earnings (P/E) ratios and promising long-term outlooks could do well. So, here are three of my ideas for ones that have low valuations.
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Bank of Queensland Limited (ASX: BOQ)
BOQ is one of the largest challenger banks in Australia. But, the BOQ share price is down 7% since the surprise announcement the regional bank's CEO was leaving. BOQ is also focused on strengthening the bank heading into a more challenging economic cycle, which could be prudent.
The bank is working on improving its operations and undertaking a technology transformation.
Using the estimates from the broker Ord Minnett, the regional bank is priced at under 10 times FY23's estimated earnings and it could pay a grossed-up dividend yield of 10.3%.
I think the dividend income alone could provide a market-beating return in 2023. Higher interest rates could also be a boost for earnings.
Corporate Travel Management Ltd (ASX: CTD)
Corporate Travel Management is one of the largest operators in its sector, particularly after its acquisition activity during COVID-19. When travel activity gets back to full volume, it's expecting to be much bigger – around 75% — than it was pre-COVID.
The business is winning more clients, which is boosting its market share, while having a customer retention rate of more than 97%.
According to the company, the industry is seeing issues being resolved week by week as the global network of travel rebuilds after the pandemic.
As airlines like Qantas Airways Limited (ASX: QAN) bring more capacity, this should also help the corporate travel space recover.
According to the broker Macquarie, the Corporate Travel Management share price is valued at 15 times FY24's estimated earnings, with a potential FY24 grossed-up dividend yield of 2.8%. This valuation comes after a 15% drop in the Corporate Travel Management share price over the last month.
JB Hi-Fi Limited (ASX: JBH)
JB Hi-Fi is one of the best retailers in Australia and New Zealand in my opinion. Despite large amounts of physical store and online competition, the ASX 200 value share has managed to perform very well over the last five years, even with players like Amazon trying to muscle in.
The business points to four competitive advantages that are helping it succeed: scale, a low-cost operating model, its multichannel capability, and its people and culture.
For customers, it offers the "best brands, [a] big range, low prices".
Its JB Hi-Fi stores are aimed at a young, tech-savvy demographic while The Good Guys stores are focused on home-making families.
FY23 has started strongly, with JB Hi-Fi Australia sales in the first quarter up 14.6% year over year and The Good Guys sales up 12.3%.
According to the broker Credit Suisse, the JB Hi-Fi share price is priced at 11 times FY23's estimated earnings with a potential grossed-up dividend yield of 8.6%. The JB Hi-Fi share price is down 20% since 30 March 2022.
