4 undervalued share prices? ITV plc, easyJet plc, SSE PLC and Taylor Wimpey plc

Do these shares offer good value for money? ITV plc (LON:ITV) (ITV.L), easyJet plc (LON:EZJ) (EZJ.L), SSE PLC (LON:SSE) (SSE.L) and Taylor Wimpey plc (LON:TW) (TW.L)




ITV plc
ITV plc

With the FTSE 100 having pulled back in recent months, I’m considering whether the share prices of ITV plc (LON:ITV) (ITV.L), easyJet plc (LON:EZJ) (EZJ.L), SSE PLC (LON:SSE) (SSE.L) and Taylor Wimpey plc (LON:TW) (TW.L) could offer good value for money.

ITV has a P/E ratio of around 10 at the moment, with the company’s financial prospects seemingly causing investors to become less interested in its investment outlook. As a cyclical business, it appears to be suffering from the effects of a slowdown in the UK’s growth rate.

However, with ITV set to put in place a revised strategy over future months, I think that it could have turnaround potential after a volatile period. Although its shares may be volatile during the Brexit process, I feel that it has a strong position within its industry, as well as a 5%+ dividend yield.

easyJet’s share price may continue to be volatile as uncertainty surrounding the wider airline industry remains relatively high. Additionally, consumer confidence in the UK is weak, and could weaken further as the Brexit process moves ahead.

However, with the oil price having fallen significantly in recent weeks, costs across the airline industry could rise at a slower pace than expected. And with easyJet having a PEG ratio of around 0.8, I feel that it could offer a margin of safety.

SSE’s share price has come under pressure in recent months, with it releasing a profit warning due in part to poor weather. There are also question marks surrounding its joint venture plans with npower for its UK domestic energy supply business, while the potential for a general election means that nationalisation is an ongoing threat in my view.

However, with SSE now having a dividend yield of around 8%, I feel that it may offer a margin of safety. Although not as defensive as it may have been in the past, I believe it could offer an improving income return in the long run.

Taylor Wimpey’s share price has suffered from uncertainty surrounding the UK economy in my opinion. Investors seem to be increasingly cautious about the prospects for the housebuilding sector, with the company reporting weaker demand in the South East in recent months.

While there could be further turbulence ahead, I believe that low interest rates and the Help to Buy scheme could combine to provide favourable operating conditions for the industry. With Taylor Wimpey having a dividend yield of around 9%, I feel it could offer good value for money for the long term.




About Robert Stephens 5151 Articles
Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email [email protected] or use one of the other contact methods available on the 'Contact Us' page