Image source: Getty Images
After the stock market volatility, i FTSE 100 contains many cheap stocks. Far-sighted investors can find real deals out there. And not all companies are hit either. These two stocks have been flying lately. Yet both still look overvalued, given their price-to-earnings (P/E) ratio. So what makes them so special?
While the FTSE 100 P/E ratio is just over 16 today, these two growth stocks are worth less than half that. Over time and compounding, they can help power a stock portfolio into millionaire territory. The average Dividends and Dividends ISA has grown by 9.5% per annum over the last ten years. At that rate, someone who invested their full £20k limit would have £1.18m after 20 years. Ready to earn money?
Just look at these low P/Es!
Lion Finance Group (LSE: BGEO) is amazing. Its shares have risen 980% in the past five years, a record performance Rolls-Royce. But while Rolls was a household name, this one flew under the radar. Lion Finance was renamed from the Bank of Georgia only in 2025, and was empowered to the FTSE 100 in March. Since then, its shares have maintained their remarkable momentum. They are up 90% in one year, and 20% in the last turbulent month. Can this continue?
Despite that stellar return, Lion’s P/E ratio remains at 6.8. So how come it is still so much money? It all boils down to that four letter word – risk. Today, it focuses on two countries in eastern Europe, Georgia and Armenia. Both are in a changing place in the world. Georgia’s capital, Tbilisi, saw massive protests over alleged fraud in the 2024 election.
Lion has great potential for growth but the political climate means things can be difficult at times. So should investors consider buying it? I think it’s an exciting game, but only for the brave.
Another great value growth stock
I stuck to the financial sector in my next value play, the online trading platform IG Group Holdings share price (LSE: IGG). Its shares are still up 60% in five years, and 42% in the past 12 months.
IG offers spread betting, contracts for difference and sharing services to retail and institutional investors. It tends to do well when markets are volatile, as this drives trading prices and profits. Unsurprisingly, it has been working well lately. In 2025, IG posted a 15% increase in pre-tax profits to £564m. It had EBITDA operating margins of 47.3% and rewarded investors with a dividend return of £125m.
How bold should investors be?
Yet IG Group still boasts a really low P/E of 6.9. Rising stock prices reduced the trailing yield, but it remained strong at 3.1%. So what are the risks? IG Group can also have down times. While it’s doing well in today’s uncertain markets, it won’t do well if it finally calms down. Also, spread betting is dangerous, and there is a lot of customer churn, as new optimists give you a shot, then back off when losses mount.
I think both stocks offer income opportunities and growth opportunities, at a very good price. We should be looking closely, for ISA investors who represent the challenge.
