The FTSE100 had a robust year. However, I still see great value in UK shares at the moment.

While this year has seen periods of volatility, that is inevitable in the stock market. Looking at the bigger picture, I think UK shares could be poised for explosive growth in the coming years.

The FTSE 100 currently has an average price-to-earnings (P/E) ratio of 11. This is lower than its historical average of 14 to 15.

I especially like the look of these two. If I had the money, I’d add them to my portfolio today.

JD sports fashion

The first one is JD sports fashion (LSE: JD.). Its stock has disappointed this year. They fall by 3.7%. This means that the company’s shares are up 16.2% over the last six months and 14.3% in the last month. After a needy start to the year, it is gaining good momentum.

Even with this growth, I still think the stock is good value for money. It is trading at a P/E ratio of 14.8. This is significantly lower than the historical average of 23.

The company’s share price had a delicate start to the year due to tough trading conditions. Sales experienced a severe decline and the company issued a profit warning. Scared investors rushed to sell their shares. This will continue to pose a risk to the company in the coming months as consumers watch their spending habits and trading conditions remain tough.

However, looking back, I think JD Sports Fashion can thrive in the long run. For starters, interest rate cuts should lead to higher spending. Moreover, the company is making good progress in implementing its expansion plans. It aims to open 200 stores this year and has also begun to focus more on international expansion. As part of this, earlier this year it recently acquired the American company Hibbett, which has over 1,100 stores on the other side of the ocean.

NatWest

Unlike JD Sports Fashion, NatWest (LSE: NWG) has had a great year. Shares fell. It has increased by 55.9% since the beginning of the year.

This unnerves the FTSE 100 index’s upside-down return. However, even after the rally, I think its stock still looks budget-friendly.

They are currently trading at a P/E of 7.1. In my eyes, for a company of NatWest’s quality, this looks very budget-friendly. Its forward P/E is 7.8.

I also like NatWest because of the passive income it offers. The dividend yield is 5% and is more than doubled by profits. Last year, the bank increased its payout by 26% to 17p per share.

I’ve also been impressed with his performances lately. Second quarter profit increased by more than 25% to £1.3 billion. In its latest update, NatWest also announced that it has acquired a portfolio of prime UK residential mortgages Metro Bank for £2.5 billion.

The biggest threat I see to the company is falling interest rates. While they will improve investor sentiment, they will reduce NatWest’s margins, which will reduce its profits.

But given the momentum and low valuation, I like the look of NatWest.