Despite hitting new heights this year, the FTSE 100 still offers plenty of cheap stocks to buy. Here are two Footsie shares that look good value to me right now.
High-quality tech stock
The first is accounting and payroll software provider Sage (LSE:SGE). While up 24% in a month, the tech stock remains 22% lower than it was 18 months ago.
Sage has been under pressure due to uncertainty about how AI might impact its business. Yet looking at the actual results, there’s no evidence of disruption. Quite the opposite, in fact.
Last month, the software firm reported nine months of accelerating revenue growth, with “momentum strengthening further in the third quarter“. Revenue increased by 11% to £2.1bn, and North America continues to be the star of the show.
Crucially, this growth’s supported by expansion of AI-powered features, including Sage Copilot and agentic capabilities. These are now available to more than 600,000 customers.
Adoption continues to grow. As customers increasingly rely on Sage for critical finance, HR, and Payroll workflows, where getting it right is essential.
CFO Jacqui Cartin.
As for risks, an economic downturn is a key one, as small- and medium-sized enterprises could be forced to cut roles, freeze hiring or reduce IT costs. There’s also plenty of competition in North America.
Looking ahead however, I think Sage shareholders should remain optimistic. Management expects organic revenue growth above 9% for FY26, and operating margins to expand as the firm benefits internally from greater AI-driven efficiency.
The UK’s ‘Making Tax Digital’ is an ongoing tailwind, with sole traders and small businesses signing up and seeing value in Sage’s platform beyond HMRC requirements.
Finally, the stock offers a well-covered 2.4% dividend yield and trades at 18.6 times forward earnings, a big discount to its 10-year average of 24. I think Sage still offers excellent value and is worth considering.
Double discount
Turning to something totally different, I want to highlight Pershing Square (LSE:PSH). This fund’s run by Bill Ackman, who has a tremendous long-term record outperforming the S&P 500 (and therefore also the FTSE 100).
However, Pershing Square shares are down almost 20% year to date. And in the first half of 2026, Ackman underperformed the S&P 500 by quite a wide margin as key holdings disappointed.
Underperformance is a risk moving forward because the fund manager runs a very concentrated portfolio of 8-12 stocks. Historically, this high-conviction strategy has worked out well, but it can backfire if some picks go south.
Looking at the portfolio though, I expect it to outperform over time. Recent additions include Visa, Mastercard, Netflix, and Intercontinental Exchange (owner of the New York Stock Exchange). These add to existing top-notch positions like Amazon, Meta, Microsoft and Uber.
Plus, because Pershing Square is trading at a wide discount to its net asset value (NAV), investors get exposure to these high-quality businesses cheaply. Indeed, Ackman argues there’s a double discount because the holdings are also cheap.
The NAV discount is near the all-time widest levels and our portfolio holdings are trading at highly attractive valuations with the addition of six new investments, so a purchase of PSH [Pershing Square Holdings] today provides investors with a double discount.
Pershing Square, August 2026.
As such, this FTSE 100 stock’s worth exploring further.
Should you invest £5,000 in Sage Group Plc right now?
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Ben McPoland owns shares in Sage, Uber, and Visa.
This story originally appeared on Motley Fool
