Sage Group (LSE: SGE) and Pershing Square Holdings (LSE: PSH) stand out as two of the more attractively valued stocks currently sitting in the FTSE 100 index.
Sage, the accounting and payroll software provider, has climbed 24% over the past month but remains 22% below where it traded 18 months ago, presenting a potential entry point for investors.
Much of the pressure on Sage has come from market uncertainty about how artificial intelligence might disrupt its core business, yet the company’s actual financial results tell a different story entirely.
Last month, Sage reported nine months of accelerating revenue growth, with “momentum strengthening further in the third quarter,” and total revenue rising 11% to £2.1bn.
North America continues to be the standout performer within the business, driving a significant portion of that top-line expansion across the period.
Far from being threatened by AI, Sage is actively harnessing it, with AI-powered features including Sage Copilot and agentic capabilities now available to more than 600,000 customers.
CFO Jacqui Cartin noted that “adoption continues to grow, as customers increasingly rely on Sage for critical finance, HR, and Payroll workflows, where getting it right is essential.”
Management expects organic revenue growth above 9% for FY26, alongside expanding operating margins as the firm benefits internally from greater AI-driven efficiency.
The UK’s Making Tax Digital initiative continues to act as a structural tailwind, drawing sole traders and small businesses onto Sage’s platform beyond basic HMRC compliance requirements.
The stock trades at 18.6 times forward earnings, a notable discount to its 10-year average multiple of 24, and offers a well-covered dividend yield of 2.4%, adding further appeal for income-conscious investors.
Turning to Pershing Square Holdings (LSE: PSH), the FTSE 100-listed investment vehicle run by fund manager Bill Ackman offers a very different but equally compelling investment case.
Pershing Square shares are down almost 20% year to date, with Ackman underperforming the S&P 500 by a wide margin in the first half of 2026 as several key holdings disappointed.
The concentrated nature of the portfolio, which typically holds between 8 and 12 stocks, is a genuine risk, as a high-conviction approach can backfire sharply when individual picks move against expectations.
However, the quality of the current holdings is difficult to argue with, featuring positions in Amazon, Meta, Microsoft, and Uber alongside recent additions including Visa, Mastercard, Netflix, and Intercontinental Exchange.
Pershing Square itself argued in August 2026 that “the NAV discount is near the all-time widest levels and our portfolio holdings are trading at highly attractive valuations with the addition of six new investments, so a purchase of PSH today provides investors with a double discount.”
That double discount argument is a compelling one, suggesting investors are acquiring stakes in already undervalued world-class businesses at an additional layer of discount through the fund’s share price.
Ackman has a long-term track record of outperforming the S&P 500, which makes a period of underperformance potentially more of an opportunity than a warning sign for patient investors.
Both Sage and Pershing Square carry their own distinct risk profiles, from economic downturns weighing on Sage’s small business customers to concentration risk within the Pershing Square portfolio.
Nevertheless, on valuation grounds, both stocks present a credible case for investors willing to look beyond short-term noise and focus on the longer-term trajectory of each business.
With the FTSE 100 continuing to offer pockets of value despite reaching new heights in 2026, these two stocks appear worthy of serious consideration before the summer concludes.