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3 More Great Value FTSE 100 Shares: BAE Systems, BT Group, Legal & General Group

By David O’Hara – May 10, 2013 at 4:30PM

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Statistics show that BAE Systems, BT Group, and Legal & General Group have better value credentials than over 90% of the shares in the FTSE 100.

LONDON -- BAE Systems (LSE: BA) (BAES.Y -5.38%) is a leading member of the consortium building the Royal Navy's next aircraft carrier at Rosyth dockyard.

The shares appear to be a better value than the average FTSE 100 share on both price-to-earnings (P/E) and dividend measures. Last year's earnings per share (EPS) came in at 30.0 pence, and the dividend was increased by 3.7% to 19.5 pence -- equal to a historic P/E and yield of 12.7, and 5.1%. That's better than the average FTSE 100 P/E of 17.1 and historic yield of just 2.9%.

Significant earnings growth is expected this year, and the dividend will likely show a similar increase. This puts the shares today on a 2013 P/E of 9.1, with an expected dividend yield of 5.3%.

BT Group
Telecoms provider BT Group (BT.A -3.46%) (BT) caused a stir this week on two fronts. On Thursday, BT announced that it would be taking on Sky by offering free Premier League football. This was followed by today's final results that revealed an 11% increase in pre-tax profits and a 14% dividend hike.

Today's announcement pushed the shares up 10%. That leaves BT shares trading on 10.9 times forecast earnings for 2014. A 10.7 pence dividend is expected for the year -- a 3.9% yield at today's price.

BT is keen to take on Sky. That is exceptionally brave. Sky is currently years ahead.

Legal & General
Shares in insurance firm Legal & General (LGEN -3.41%) have had a great 2013, rising 23% so far. This has pushed the shares to a 10-year high.

Legal & General's most recent results revealed a 12.2% increase in EPS. The total dividend payout for the year was raised 19.5%. This equates to a historic P/E of 13.0 times earnings, and a yield of 4.2%.

Analysts are forecasting more growth in the next two years. If this comes through as expected, the shares are trading on a 2014 P/E of 11.2, and a prospective yield of 5.7%. Legal & General is clearly going places.

These three blue-chip shares have a strong track record. However, analysts here at the Motley Fool believe that they have identified five other blue-chip companies that offer superior prospects for the long run. Read their analyses in the latest Motley Fool report, "5 Shares To Retire On." This report is 100% free and will be delivered to your inbox immediately. Just click here to start reading today.

David O'Hara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

BT Group Stock Quote
BT Group
$129.85 (-3.46%) $-4.65
BT Group Stock Quote
BT Group
Legal & General Group Plc Stock Quote
Legal & General Group Plc
$246.20 (-3.41%) $-8.70
BAE Systems Stock Quote
BAE Systems
$34.32 (-5.38%) $-1.95

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