Since the FTSE 100 has fallen in the last six months, I’m considering whether shares in ITV plc (LON:ITV) (ITV.L), Aviva plc (LON:AV) (AV.L), Barclays PLC (LON:BARC) (BARC.L) and Royal Bank of Scotland Group plc (LON:RBS) (RBS.L) could offer good value for money.
ITV’s share price prospects may be relatively uncertain in the near term. The stock is reliant on the UK economy for the majority of its income. A weaker outlook seems to have caused a slowdown in demand for TV advertising, which means that the company’s financial prospects are somewhat downbeat.
ITV is forecast to post a fall in EPS in the current year. However, since it has a P/E ratio of around 11 and is set to put in place a revised strategy over the medium term, I think that it could offer long-term recovery potential.
Aviva’s P/E ratio of around 7 is one of the cheapest I can find in the FTSE 100 at the moment. The company may have seen its CEO resign recently, but its growth plan seems to be sound in my view. It has exposure to fast-growing markets, as well as dominant positions in established markets.
With a dividend yield that is expected to be over 7% next year and the prospect of a 9% rise in EPS for 2019, I think that Aviva could offer good value for money.
Barclays may also be able to beat the FTSE 100 in the long run in my opinion. The bank has largely completed its restructuring and is now expected to pay a higher dividend as a result of it generating excess capital.
In fact, it is expected to yield almost 5% in 2019, which could indicate that it offers a margin of safety. Although potentially volatile due to uncertainty regarding the world economy, I’m optimistic about the recovery prospects for Barclays in the long run.
The prospects for RBS may continue to be uncertain in my view. The Brexit process could become more challenging in my opinion, with there seemingly a low chance of Theresa May’s Brexit deal passing successfully through Parliament.
However, with RBS having a forward yield of over 5%, I think that the stock could offer good value for money at the moment. Its underlying financial performance is forecast to improve, and this could catalyse investor sentiment in the stock over future years.