There are a few different ways to judge whether an ASX share is cheap. A decline in the share price could be an obvious one.

A business' market capitalisation could be trading cheaper than its balance sheet value, called a price-to-book ratio. An ASX share could trade on a low price-earnings (P/E) ratio. Or, it could be trading on a cheaper valuation ratio than it normally does.

One of the ASX shares I'll talk about trades on a low P/E ratio, and the other is valued on a low price-to-book ratio.

Let's get into it.

GQG Partners Inc (ASX: GQG)

GQG is a funds management business based in the US which provides a variety of strategies for clients including US shares, international shares, global shares, and emerging market shares.

Different industries tend to trade at different earnings multiples. ASX tech shares normally trade at a high P/E ratio, while sectors like retail, resources, and fund managers typically trade at a lower earnings multiple. That may be because their earnings are not seen as defensive or reliable as those of other sectors.

But, the low valuation for this cheap ASX share doesn't reflect its growth, in my view. There are two main ways a fund manager can grow funds under management (FUM) – deliver investment returns to grow FUM and attract new client money.

GQG has a long track record of delivering investment returns for clients that have outperformed their benchmarks. That's not guaranteed to continue, but investment returns are a very useful boost for FUM.

The fund manager regularly tells investors whether it has seen client net inflows or outflows. In the result for the 12 months to December 2024, the company experienced 45.4% growth of average FUM to US$148.2 billion with net inflows of US$20.2 billion for the year.

GQG saw January 2025 net inflows of US$1.7 billion, which represented 1.1% of December 2024's closing FUM. The combination of net inflows and investment returns is helping FUM continue growing.

The fund manager reported net profit growth of 52.8% to US$431.6 million in FY24. I don't think the current valuation reflects how much the business could continue growing.

According to Commsec, it's trading at 9.6x FY25's estimated earnings. If the cheap ASX share can grow earnings by 10% per year, I think its outlook is very bright for the foreseeable future.

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) that owns various properties, including pubs and bottle shops, telecommunications exchanges, government-leased offices, industrial buildings, and so on.

In an economic environment where interest rates in Australia are starting to come down, I believe undervalued REITs could be a compelling idea.

A lower interest rate can lower interest costs, improve rental profits, and increase the value of the properties.

The business tells investors about the underlying value in each result (which includes the property portfolio and the debt). At December 2024, its net tangible assets (NTA) was $4.62, so the cheap ASX share is trading at a 16% discount.

With ongoing rental growth and a strong property portfolio, I think this is an appealing, cheap ASX share today.