Some UK shares just look too cheap. So here are five that look well worth deeper research and consideration right now.

A turnaround may be coming

In the lead FTSE 100 index, telecommunications giant BT (LSE: BT.A) is changing hands on a low rating. With the share price near 146p, the forward-looking price-to-earnings (P/E) ratio is just below 7.9 for the trading year to March 2026. That compares to the average rating for the FTSE 100 at about 13.6.

However, BT does have risks, one of which is the mountain of debt on the balance sheet. Another is its patchy earnings record, suggesting an uncertain path ahead. On top of those things, BT operates in competitive markets.

Nevertheless, the company announced this year it had passed peak capital expenditure for its fibre broadband rollout programme. So perhaps more of the firm’s cash flow can be used for debt-reduction and shareholder dividends.

Meanwhile, the anticipated dividend yield for next year is running at about 5.5%, which offers shareholders a decent level of income now. But if the company’s cash flow can drive dividend progression in the coming years, the rising payment may help push the share price higher too.

BT may be on the cusp of an enduring turnaround. However, City analysts predict flat earnings next year after a decline this year. So there’s much for the firm to do. But that’s probably why the valuation looks undemanding.

The attractive financial sector

Meanwhile, some of the big financial companies are on low ratings, such as Legal & General and Aviva. As I write (17 October), both have forward P/E ratings below 10 and anticipated dividend yields well above 7%.

In each case, City analysts anticipate robust earnings increases this year and next with positive dividend progression too.

However, the financial sector is cyclical and that can lead to some wide swings for earnings and share prices. So it would be easy to mis-time an investment in the shares and end up losing money.

Capital gains from rising long-term share prices may prove elusive. Nevertheless, both have impressive valuation and trading figures now.

In the wider financial sector, TP ICAP looks like good value and could provide useful diversification in a portfolio of stocks. The firm is a UK-based liquidity and data solutions company. But, once again, the business is exposed to cyclical risks and may never attract a higher valuation than it has.

An adventurous oiler

Another to consider is oil and gas company Serica Energy. City analysts’ earnings estimates are robust, and all four brokers following the firm have the stock as either a Buy or a Strong Buy.

That’s no reason in itself to buy the shares, but it makes the company worth further investigation. Meanwhile, the forward-looking P/E is just below three.

Of course, the oil sector is another that’s cyclical, adding risk. On top of that, smaller oil companies like this can see big swings in their fortunes.

Nevertheless, the trading numbers look good and that rating is low!