2 dirt-cheap FTSE 250 shares to buy today

I have been looking for dirt-cheap FTSE 250 shares to buy today for my portfolio.

I am searching for companies battling temporary headwinds that may capitalise on the economic recovery over the next few years.

A great example is pub and bar operator Mitchells & Butlers (LSE: MAB). 

FTSE 250 recovery play

This business suffered a 50% drop in sales in its 2021 financial year. However, in its latest trading update, the company told investors that like-for-like sales for the 16 weeks ended January 12 came in just 3.9% lower than pre-pandemic levels. 

Unfortunately, plenty of headwinds could hit growth in the months ahead. The cost of living crisis is the organisation’s main challenge, with wages and costs rising across the business. 

Still, analysts believe the company’s sales will return to, and potentially exceed, pre-pandemic levels over the next two years. Based on these projections, the stock is trading at a forward price-to-earnings (P/E) multiple of just 9.9.

It is also trading at a significant discount to value. The price-to-book (P/B) value of the shares is currently 0.7. In theory, any profitable company should trade at book value, implying the stock is undervalued by around 30%. 

Based on these factors, I would buy the dirt-cheap FTSE 250 company for my portfolio of recovery investments. 

For me, the homebuilding sector also currently looks attractive, despite the government’s threats to force developers to pay for the UK’s cladding crisis. This could inflict a multi-billion pound penalty on the industry. All companies in the sector are now on notice.

Nevertheless, I also believe that the sector benefits from significant favourable tailwinds. These may help it ride out any government action.

One of the best shares to buy today 

Most importantly, the country’s housing market is structurally undersupplied, which will take years to rectify.

In the meantime, it looks as if house prices will continue to rise, benefiting FTSE 250 developers like Redrow (LSE: RDW). These companies should be able to sell more properties at higher prices with the right tailwinds. 

Right now, it looks to me as if the market is ignoring this positive. At the time of writing, the stock is trading at a forward P/E multiple of 6.8. It also supports a dividend yield of nearly 5%. 

According to the company’s latest trading update, Redrow has been rising to the challenge. It added 1,400 plots to its current landbank in the 19 weeks to the beginning of November, with more added to the long-term land bank.

The group has an order backlog of £2.1bn properties and nearly £300m of net cash on the balance sheet. That should keep it snapping up new landholdings and pushing forward with developments. 

Considering the state of the UK housing market, the company’s current valuation and its potential over the next few years, I think this would make a great addition to my portfolio of FTSE 250 shares.