I requested ChatGPT for reasonable FTSE 100 index shares. It mentioned…

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The FTSE 100 has risen 17% in 2025, but the index stays full of cut price shares this November.

Whether or not primarily based on earnings forecasts, anticipated dividends, or e-book values, London is residence to many low cost high quality shares. However that are the perfect ones to purchase?

I requested ChatGPT. It gave me some attention-grabbing — and a few alarming — solutions…

The 4 shares

I punched “What are the best cheap FTSE 100 stocks to buy?” into the AI mannequin’s search bar. It gave me a listing of 4 worth shares:

• Barclays
• Centrica
• BAE Programs
• Vodafone (LSE:VOD)

A few these are wonderful shares. Regardless of provide chain points, BAE Programs has an amazing alternative to develop earnings as defence budgets increase. I additionally like telecoms titan Vodafone’s alternative to develop gross sales because the digital revolution rolls on, and particularly in fast-growing African markets.

I’m much less enthused about its tackle Barclays and Centrica. However it takes a couple of opinion to make a market, as they are saying.

Oh expensive

Nevertheless, ChatGPT fell down on a very powerful little bit of my query: to select the perfect worth shares for me.

Barclays’ share worth has risen 54% in 2025, leaving it buying and selling on a price-to-book (P/B) ratio of 0.9. That’s virtually double the financial institution’s 10-year common of 0.5.

Centrica’s P/B is extra engaging from an historic perspective. This sits at 1.7 versus the decade-long common of two.5 occasions. However with a ahead price-to-earnings (P/E) ratio of 12.9 occasions and a 3.3% dividend yield, the corporate doesn’t scream ‘outstanding value’ to me.

Whereas I like BAE Programs and Vodafone, these don’t look low cost on paper both. The defence agency’s ahead P/E ratio of 25.5 occasions soars above the 10-year common of 15 occasions. BAE’s share worth has soared 58% in 2025.

AI issues

These inaccuracies completely illustrate why I don’t use ChatGPT when trying to find shares to purchase. I typically discover its rationale to be extremely questionable, and its suggestions primarily based on deceptive (or improper) data.

On this case, ChatGPT primarily based its recommendations on The Motley Idiot articles. That will get my seal of approval (I used the TMF to assist me select shares lengthy earlier than I joined its writing staff).

The issue is that ChatGPT primarily based its share recommendations on outdated articles. For Centrica, it used a five-month-old piece, whereas Barclays and BAE Programs was lined by TMF 4 months in the past. Barclays and Centrica specifically have soared in worth since then.

The AI’s advice of Vodafone shares was primarily based on an article from November 2023!

One high inventory

Having mentioned that, I do imagine Vodafone is an inexpensive inventory value severe consideration proper now. Alhough it doesn’t provide the great worth it did only a few months in the past, I believe it appears low cost from an historic foundation.

Vodafone’s share worth has leapt 36% in 2025.

The telecoms big trades on a ahead P/E ratio of 14.7 occasions. That’s beneath the 10-year common of 17.7 occasions.

Vodafone nonetheless has challenges to beat following regulatory adjustments in Germany. However it’s making an excellent fist of it, and a return to development there pushed revenues 7.3% larger throughout April to September. In depth group-wide streamlining places it in higher form to develop future income as effectively.

I’m glad to exclude these different FTSE 100 shares from a price portfolio, although.