There’s no surefire approach to discover FTSE shares with assured progress potential. For that, I’d want a crystal ball. Nevertheless, checking sure metrics can present an thought of whether or not a present price is sweet worth or not.

Three metrics I used to guage worth are price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and discounted money move (DCF) analysis. P/E and P/B ratios consider whether or not a share price is acceptable in comparison with earnings and ebook worth. A reduced money move (DCF) mannequin considers whether or not the corporate has sufficient free money flows to justify the present price.

Utilizing these metrics, these are three choices that look enticing to me they usually may very well be value doing additional research.

Customary Chartered

My portfolio’s already closely weighted in the direction of financial institution shares so I’m not likely wanting so as to add extra. Nonetheless, I couldn’t assist however discover Customary Chartered (LSE: STAN) has a low P/E ratio of 8.1. That’s nicely under the UK market common of 16.8. Its P/B ratio of 0.5 can be enticing. That’s under rival financial institution HSBC, at 0.8, and the UK banking business common of 0.7.

Future money move estimates counsel the present price may very well be undervalued by 63%.

However the price is already up this 12 months, not too long ago hitting a 12-month excessive. Now at £7.13, it’s solely down 0.28% prior to now 5 years. Additional progress might require a powerful financial restoration, which can (or might not) be on the playing cards.

With rate of interest cuts anticipated this 12 months, the banking sector may benefit. However with a lot of Customary’s actions targeted in Asia, I’d fastidiously take into account this market’s prospects earlier than shopping for. 

Worldwide Consolidated Airways Group

Worldwide Consolidated Airways Group (LSE: IAG) is the guardian firm of British Airways, Iberia, Vueling and Aer Lingus. It’s down 60% since early 2020, struggling for years to regain losses incurred throughout Covid. Now with a lingering debt load of €16bn in comparison with solely €3.28bn in fairness, it has a debt-to-equity ratio of 490%.

That severely limits any future funding initiatives geared toward boosting earnings.

However with that every one behind us and air journey again at excessive capability once more, issues ought to enhance. The present P/E ratio may be very low, at 3.7 – far under the UK market common and virtually half the airline business common of 6.6. And future earnings estimates put the honest worth nearer to £2.30, not the present price of £1.76.

With the summer time holidays coming, I wouldn’t be shocked to see a lift in gross sales.

Imperial Manufacturers

Imperial Manufacturers (LSE: IMB) is working to distance itself from the stain of its tobacco enterprise. Whereas nonetheless the primary supply of revenue, it’s conscious that occasions are altering and is shifting to much less dangerous next-generation merchandise like vapes. The long-term success of this plan stays to be seen. 

For now nonetheless, the price appears low cost at 50% off its 2016 excessive. With earnings up 25% prior to now 12 months, future money move estimates put it at 62% under honest worth. And with a P/E ratio of solely 8.3, it’s under each the UK market and tobacco business common. On prime of that, it has a really enticing dividend yield of seven.2%, which is well-covered by money flows.