The Australian share market may be trading within sight of a record high, but that doesn't mean there aren't any cheap ASX shares out there.

For example, the two shares listed below could be undervalued and offer major upside according to analysts. Here's why they think they are cheap:

GQG Partners Inc (ASX: GQG)

Goldman Sachs thinks that this embattled fund manager's shares have been oversold in recent months.

Especially after its funds under management (FUM) were only modestly impacted by its investments in the Adani Group. It explains:

We retain our Buy rating on GQG: We lower our PT to $2.80 from A$3.00 to reflect the relatively muted impact on flows to date despite an outsized share price reaction resulting in a year P/E of <9x. We've moderated our flows reflecting some slowdown, albeit manageable in our view.

GQG is a global asset manager with an active equity focus. We are Buy rated on GQG because: 1) Net flow trajectory has been very strong 2) Strong performance has resulted in performance fees becoming increasingly more material 3) Medium and long term relative performance strong 4) Attractive valuation vs. peers in context of very strong earnings growth. 5) Impacts from Adani appear manageable.

As mentioned above, Goldman has a buy rating and $2.80 price target on the ASX share. Based on its current share price of $2.07, this implies potential upside of 35% for investors over the next 12 months.

Readytech Holdings Ltd (ASX: RDY)

Analysts at Morgans think Readytech could be a cheap ASX share to buy. It is a leading software as a service (SaaS) provider of mission critical software to the tertiary education, government, justice, and enterprise markets.

Morgans believes its shares are undervalued, making it a prime example of growth at a reasonable price (GARP) on the Australian share market. It explains:

Its products include student management, payroll and HR solutions, and enterprise resource planning (ERP) to local government and legal case management. RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years. Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.

Morgans has an add rating and $3.74 price target on its shares. Based on its current share price of $3.08, this implies potential upside of 21% for investors between now and this time next year.