As investors, we all want to avoid overvalued companies and preferably buy cheaply FTSE100 shares. Theoretically, over time, undervalued stocks should return to their fair value, generating profits for those who bought inexpensive. Using a popular metric, here are two of the cheapest options right now.

Fallen angel

What I mean is the price-to-earnings ratio (P/E). This is a common metric used to assign a value to a company based on its current share price compared to its most recent earnings per share. A lower number usually indicates that the company is undervalued, although a buying decision should not be based solely on this number. I exploit the number 10 as a reference point for comparison.

The first company is WPP (LSE:WPP). This is a controversial choice considering the share price has dropped 60% in the last year. The main reason for this was repeated cuts to sales and profit forecasts for the entire year 2025. This is blamed on customers tightening their marketing budgets and cutting back on discretionary advertising spending. This remains a risk in the future.

However, I feel like the stock has fallen to a point where it now looks very inexpensive, with a P/E ratio of 6.50. There are several reasons why we can expect a rebound in 2026.

It invests heavily in artificial intelligence-based tools and data platforms. This could pay off huge if clients start returning to agencies that can offer advanced analytics. Moreover, with modern CEO Cindy Rose taking the reins in September, an extensive turnaround plan is beginning to be implemented. Over the next six months, signs of progress should become more noticeable.

Turning on the engines

Another spare easyJet (LSE:EZJ). Over the past year, the share price has fallen 11%, with a P/E ratio of 7.67.

Despite very good annual results published in November, certain factors contributed to the weaker results this year. For example, revenue per available seat kilometer (RASK) decreased by 3% compared to last year. I read the analyst note from JP Morgan earlier this month signaled that the company was facing price pressure on tariffs in the highly competitive short-haul market.

While this is a risk that should be watched closely, I believe the market is too despondent about easyJet. Underlying EBIT for the 2025 financial year was £703 million, an boost of 18% compared to 2024. It is also becoming more diversified in terms of the distribution of revenues from different areas. For example, profit growth was split fairly evenly between the airlines business and the vacation division. This should bode well for the future.

I also think that some investors are still concerned about what happened during the pandemic. It was indeed a complex period for the company. But it was a black swan event. EasyJet has bounced back very strongly and is arguably in a better position now than before the pandemic struck. Therefore, as people become more comfortable with the idea that another pandemic is likely not just around the corner, the easyJet share price should rise again.

I believe both stocks are good value right now and investors may want to consider them.