Finding a cheap ASX share is not a matter of looking for the biggest decline.
For me, the best opportunities are when the valuation looks modest compared with what a business could earn over the next few years.
Here are three ASX shares fit that description today.
Zip is probably the value opportunity of the three.
The buy now, pay later company's shares have fallen heavily and were recently trading around $1.99, well below their 52-week high of $4.94.
What makes that decline interesting is the earnings outlook.
Consensus forecasts point to earnings per share of 15 cents in FY27, rising to 18 cents in FY28 and 22.4 cents in FY29.
At $1.99, that puts Zip shares on a PE ratio of about 13.3 times forecast FY27 earnings. If the company reaches the FY29 estimate, the multiple falls to just under 9 times.
Zip still needs to deliver on those forecasts, and to expect plenty of volatility along the way.
CSL shares have already staged a recovery. The healthcare giant is now trading around $177.67, almost double its 52-week low of $90.
For a global healthcare business with strong positions in plasma therapies, vaccines, and specialised medicines, that valuation still looks attractive.
Cheap can mean different things in the share market, and that is what makes these three ASX shares worth another look.