Ftse 100 Today: As the index nears 11,000, some top shares remain dirt cheap — and why that matters

The screens in a small investment office glow as traders watch the ftse 100 today creep toward 11, 000 points — the index is up roughly 21% over the last 12 months, yet not every blue‑chip has joined the rally. That gap has left a handful of established companies trading at valuations that some analysts call “dirt cheap. ”

Ftse 100 Today: Which blue‑chips are still “dirt cheap”?

Two names repeatedly flagged in recent commentary are Persimmon and JD Sports. Persimmon shares sit at £14. 69 with a price‑to‑book ratio of 1. 2, well below its 10‑year average of 1. 9. The housebuilder’s recent operating metrics include completions rising 12%, asking prices up 4% and an order book that inched 2% higher to £1. 2bn, giving the company clearer earnings visibility despite broader economic worries.

JD Sports trades around 77p per share and shows a price‑to‑book ratio of 1. 4 against a long‑term average of 4. 2. Its forward price‑to‑earnings multiple has fallen to about 7. 3, roughly half its 10‑year norm. Like‑for‑like revenues were down 1. 8% in the latest quarter, but sales growth has returned in the US market — a point that could matter if momentum continues.

From other corners of the index, Berkeley Group carries a trailing P/E near 10. 6 and has seen its share price rise about 9% over the last 12 months. Prudential trades on a trailing P/E close to 10. 7 and is up roughly 42% since last year; its new business profit was higher by 10% for the January–September period in the latest financials.

Why housing, retail and interest rates matter

Housing market data and interest‑rate dynamics are core to this story. Nationwide, the building society, said average house prices rose 0. 3% month‑on‑month in February and were up 1% year‑on‑year, and it predicted activity could recover in coming quarters if improving affordability continues. At the same time, commentators note the Bank of England is cutting interest rates, and lenders are fighting a fierce mortgage‑product war that is helping home sales.

Property forecasts also play into investor thinking: Savills, the real estate services specialist, predicts average property values in the capital will rise roughly 14% between now and 2030. For companies with London‑ and South‑East‑focused landbanks, that long‑term backdrop supports the argument that current market prices may already reflect short‑term risks.

But headwinds remain. Geopolitical tensions and oil‑price moves were highlighted as factors that could push inflation and complicate the path for further rate cuts, and retail chains are still contending with squeezed consumer spending.

Voices from the market and what they suggest

Royston Wild, the author of the analyses underlying these views, frames the bargains in plain terms: “I believe the current valuation more than factors in that risk, ” he wrote about Persimmon, and of JD Sports he added, “I think JD shares could be a steal worth thinking about at current prices. ” On housebuilders such as Berkeley, he wrote that long‑term undersupply in prime regions supports their prospects and that he “feels now represents a good time to consider buying. ” These are judgments grounded in the metrics noted above rather than in any single event.

Institutional data and company results further temper the debate. Persimmon’s order book and completion gains are concrete measures of forward work; Prudential’s new business profit uplift is a clear earnings signal; JD’s US sales recovery is a market‑specific datapoint that could underpin a turnaround if sustained.

What investors and companies are doing

Market participants are responding on several fronts: some lenders are competing hard on mortgage products to support demand; builders are reporting improved completions and stronger order books; retailers are chasing growth in overseas markets. Corporate results already showing recovery in pockets are being used to argue that valuations have room to rerate.

For anyone tracking the ftse 100 today, the practical takeaway is a familiar one: strong headline index performance can mask meaningful dispersion beneath the surface. Cheap multiples do not equal certainty, but they do reopen conversations about risk, recovery and time horizon for investors willing to look beyond index‑level moves.

Return to the trading room and the screens glow on: the index may be near 11, 000, but the stories inside it — cheap housebuilders, battered retailers, resilient insurers — are still being rewritten.