I’m thinking about buying these ultra-cheap FTSE 100 shares. Allow me a few minutes to explain why I believe they could help me make massive returns.

Associated British Foods

Associated British Foods has a chance to deliver mighty profits growth as it rapidly expands its Primark clothing division. It’s an opportunity I don’t think is reflected at current share prices though. Today, the FTSE 100 firm trades on a forward price-to-earnings growth (PEG) ratio of 0.2. This is comfortably below the benchmark of 1 that suggests a stock is undervalued.

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Sales in the US have been particularly strong for Primark, prompting the business to accelerate store openings there. It plans to have 60 stores up and running within five years, up from 13 at present.

Expansion in other territories will take the global total to 530 too, up from around 400 today. Fast-fashion is growing rapidly and ABF will remain well-placed to capitalise on this. I’d buy the company in spite of the supply chain issues it’s currently facing.

BAE Systems

BAE Systems meanwhile offers terrific all-round value for money. The weapons maker trades on a forward price-to-earnings (P/E) ratio of 11.6 times and boasts a 4.6% dividend yield. I’d buy the business as the geopolitical climate gets increasingly chilly. Last week, Russia escalated tensions with the US by threatening to deploy its troops in Latin America.

With concerns over China’s intentions, as well global terrorism also worrying the West, it’s likely defence spending will remain strong. As a major supplier to the US, UK and some emerging markets, BAE Systems stands to be a big beneficiary. I think it’s a great buy, even though possible project delays would hit earnings hard.


Strong conditions in the advertising market are persuading me to buy WPP too. The ad agency had a stellar year in 2021 as marketing and advertising budgets bounced back. Steps to improve its expertise in digital are also paying off as e-commerce expands strongly. I’m encouraged by the FTSE 100 firm’s determination to continue building for growth through shrewd acquisitions too.

Media business Zenith thinks global ad spending will have reached $705bn in 2021 and grow to be worth $873bn by 2024. WPP has the clout to maximise this opportunity to its fullest. Today, the business trades on a forward PEG ratio of 0.9. I believe this represents excellent value, despite the threat that Omicron poses to the industry’s recovery.


City analysts are expecting annual earnings at gambling operator Entain to more than double in 2022. As a consequence, it trades on a forward PEG ratio of just 0.2. I’m thinking of getting exposure to the rapidly-growing online gaming arena (Statista thinks the industry will be worth $92.9bn in 2023, up from $66.7bn last year). And at current prices, I think Entain could be a great way for me to do this.

This particular company operates some of the most popular gaming brands out there. These include Ladbrokes, bwin, partypoker and, in the fast-growing US market, it holds a 50% stake in the BetMGM venture. Despite the threat posed by regulators, I think Entain and its heavyweight brands could help investors make terrific long-term returns.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Associated British Foods. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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