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The FTSE 100 has risen 17% in 2025, yet the index remains packed with bargain stocks this November.
Whether based on earnings forecasts, expected dividends, or book values, London is home to many cheap quality shares. But which are the best ones to buy?
I asked ChatGPT. It gave me some interesting — and some alarming — answers…
The four stocks
I punched “What are the best cheap FTSE 100 stocks to buy?” into the AI model’s search bar. It gave me a list of four value stocks:
- Barclays
- Centrica
- BAE Systems
- Vodafone (LSE:VOD)
A couple of these are excellent stocks. Despite supply chain issues, BAE Systems has a great opportunity to grow earnings as defence budgets boom. I also like telecoms titan Vodafone’s opportunity to grow sales as the digital revolution rolls on, and especially in fast-growing African markets.
I’m less enthused about its take on Barclays and Centrica. But it takes more than one opinion to make a market, as they say.
Oh dear
However, ChatGPT fell down on the most important bit of my question: to pick the best value stocks for me.
Barclays’ share price has risen 54% in 2025, leaving it trading on a price-to-book (P/B) ratio of 0.9. That’s almost double the bank’s 10-year average of 0.5.
Centrica’s P/B is more attractive from an historical perspective. This sits at 1.7 versus the decade-long average of 2.5 times. But with a forward price-to-earnings (P/E) ratio of 12.9 times and a 3.3% dividend yield, the company doesn’t scream ‘outstanding value’ to me.
While I like BAE Systems and Vodafone, these don’t look cheap on paper either. The defence firm’s forward P/E ratio of 25.5 times soars above the 10-year average of 15 times. BAE’s share price has soared 58% in 2025.
AI problems
These inaccuracies perfectly illustrate why I don’t use ChatGPT when searching for shares to buy. I often find its rationale to be highly questionable, and its recommendations based on misleading (or wrong) information.
In this case, ChatGPT based its tips on The Motley Fool articles. That gets my seal of approval (I used the TMF to help me choose stocks long before I joined its writing team).
The problem is that ChatGPT based its share tips on old articles. For Centrica, it used a five-month-old piece, while Barclays and BAE Systems was covered by TMF four months ago. Barclays and Centrica in particular have soared in value since then.
The AI’s recommendation of Vodafone shares was based on an article from November 2023!
One top stock
Having said that, I do believe Vodafone is a cheap stock worth serious consideration right now. Alhough it doesn’t offer the tremendous value it did just a few months ago, I think it looks cheap from an historical basis.
Vodafone’s share price has leapt 36% in 2025.
The telecoms giant trades on a forward P/E ratio of 14.7 times. That’s below the 10-year average of 17.7 times.
Vodafone still has challenges to overcome following regulatory changes in Germany. But it’s making a good fist of it, and a return to growth there pushed revenues 7.3% higher during April to September. Extensive group-wide streamlining puts it in better shape to grow future profits as well.
I’m happy to exclude those other FTSE 100 stocks from a value portfolio, though.
