Once I’m on the lookout for low-cost shares to purchase on the Footise, there’s one pretty easy measure I typically begin with.

I have a look at all of the forecast price-to-earnings (P/E) ratios, for the present and subsequent monetary years. Leaving out any that don’t have a optimistic P/E, I take a look at the bottom ones.

The next desk exhibits 5 low-cost FTSE 100 shares by that measure, all of which are a magnet for my consideration. It exhibits the forecast P/E for the present yr, plus subsequent yr. And I’ve thrown in dividend yields too.

Tremendous low-cost

Airways are a bit hammered proper now by the Center East battle and the impact that’s had on the oil price.

However greater oil costs shouldn’t do BP any hurt, and that’s one of many two that appeal to me essentially the most of those. Its ahead P/E of 9.5 isn’t one of many lowest. However earnings forecasts that will drop it to six.8 subsequent yr get it on to the checklist.

Regardless of Brent Crude buying and selling at $78 a barrel on the time of writing, the BP share price has nonetheless fallen 12% thus far in 2024. And it’s nonetheless decrease than it was earlier than the pandemic.

In its final quarterly replace in July, CFO Kate Thomson mentioned:

Our resolution to extend our dividend by 10%, and prolong our buyback programme dedication to 4Q 2024, displays the arrogance we’ve in our efficiency and outlook for money era.

The massive unknown is how lengthy BP will be capable of pump oil and make revenue from it. And we’ll, certainly, wean ourselves of fossils fuels some day.

However a cash-cow inventory like BP, paying massive dividends whereas on low P/E ratios like these? All of it makes me severely contemplate shopping for.

Finest worth financial institution?

That low valuation for NatWest Group makes me surprise if it is perhaps the most effective FTSE 100 financial institution for me so as to add to my Shares and Shares ISA in 2024.

These low forecast P/E multiples are about half the long-term Footsie common. They usually come even after the share price has had a cracking 2024, up 53% year-to-date.

My important worry is what impression falling rates of interest may have on Barclays’ lending margins. And it’s sounding like we’d have larger cuts sooner.

In addition to the dividends, NatWest has had the money for a £1.2bn share buyback, which it accomplished in Could. And the acquisition of £2.5bn of mortgages from the troubled Metro Financial institution appears like a canny transfer.

For the complete yr, the financial institution advised us at interim time it expects a return on tangible fairness above 14%, which I fee as very enticing. However the board did level out that yr will rely on our unsure financial outlook.