These FTSE 250 growth shares look like brilliant bargains at current prices. Here’s why I think they deserve a close look.

Chemring Group

Supply chain issues remain a problem across the aerospace and defence industry. Yet booming demand means Chemring Group (LSE:CHG) is one of several defence companies performing strongly.

In truth, the company’s share price has disappointed in 2024. It’s currently down by mid-single-digit percentages for the year to date after last week’s update prompted heavy selling.

I think it could be one of the global defence industry’s greatest bargains.

On Tuesday (17 December), Chemring — which makes countermeasures like flares for planes, ships, and land vehicles — said revenues were up 9% in the 12 months to October 2024, at £510.4m. Its order book, meanwhile, leapt through the billion-pound barrier for the first time, up 13% year on year to £1.04bn.

For this financial year, analysts think Chemring’s earnings will surge 28%. A further 12% increase is predicted for fiscal 2026 too.

This means the FTSE 250 firm offers solid value with a price-to-earnings-to-growth (PEG) ratio of 0.6. Any reading below 1 implies that a stock is undervalued.

I’m not surprised by the City’s bullishness. Defence spending is surging globally, and Chemring is investing heavily to capitalise on this. It is targeting £1bn in annual revenues by 2030 and expanding manufacturing in the UK, US, and Norway to reach this target.

A strong balance sheet leaves the business in good shape to invest heavily for growth too. Its net debt to underlying EBITDA (earnings before interest, tax, depreciation, and amortisation) target was 0.56 as of October, well inside its target of below 1.5 times.

NCC Group

NCC Group (LSE:NCC) is another FTSE 250 bargain share worth a close look. Its share price is up 16% since the start 2024, although it has fallen sharply following a chilly December trading update.

I feel this could be a tasty dip buying opportunity for investors. Its PEG ratios for the next two financial years (ending September 2025 and 2026) are both below the value watermark of 1, at 0.3 and 0.7, respectively.

These are backed by predicted annual earnings growth of 84% and 26% for this year and next.

On 10 December, NCC spooked investors by announcing it had seen “a lengthening of sales cycles” in more recent months. This reflects trends in the broader market, and could continue if sluggish economic conditions persist.

While worth considering, recent issues wouldn’t deter me from buying the tech share if I had cash to invest. Any further problems are baked into the low valuation in my opinion. What’s more, the long-term outlook here remains extremely robust.

Sales are still flying as the number of online threats exponentially grows. During the 16 months to September, NCC’s revenues leapt 28.2% to £429.5m. This reflects its wide range of services, which include incident detection, consulting, and assurance.

The firm’s undergoing significant transformation to maintain its impressive sales momentum, too. Measures include offshoring some of its operations, rebranding, and targeting higher value and longer contracts with its Managed Services unit.