ASX shares can deliver excellent returns if they are trading at a share price valuation that is much cheaper than they're actually worth.

In this period of time when the Reserve Bank of Australia (RBA) could cut the cash rate multiple times in the coming months, undervalued ASX shares could be a great buy if investors start searching for returns beyond savings accounts and term deposits.

ASX shares that could benefit the most from RBA rate cuts, while offering underlying operational growth themselves, could be a winning combination. Below are two of my favourite ideas right now.

Centuria Industrial REIT (ASX: CIP)

This is a real estate investment trust (REIT) which owns a national portfolio of quality industrial properties. There is growing demand for industrial space because of a variety of tailwinds.

Australia's growing population is a useful tailwind by itself. Next, there is growing adoption of e-commerce, requiring more warehouse space. There's a growing number of data centres because of the rise of AI and cloud computing in general. The final tailwind I'll mention is that Australia needs more refrigeration space for food and medicine.

This demand is helping increase the rental potential and value of the properties over the long-term.

I think RBA rate cuts could particularly help REITs like this ASX share because lower debt costs should boost rental profits and it should increase the value of the properties (in theory).

The business regularly tells investors about what its underlying value is with a figure called the net tangible assets (NTA). This includes the value of properties, the debt, cash and everything else on its balance sheet.

At 31 December 2024, it had NTA per unit of $3.89. The ASX share is currently trading at a 19% discount to this, which I think is a great bargain.

Bailador Technology Investments Ltd (ASX: BTI)

This business invests in small technology businesses which have strong potential.

There are a number of characteristics the companies inside Bailador's portfolio have in common. This include being run by the founders, having a proven business model with attractive unit economics, generating international revenue, having a huge market opportunity and having the ability to generate repeat revenue.

Its largest positions include hotel management and online accommodation booking software, financial advice and investment management software, a digital healthcare platform, a specialist telehealth platform, booking software for tours and activities, and volunteer management software.

In the FY25 half-year result, the company reported that in 2024 its portfolio of companies delivered revenue growth of 42%, with around 90% of revenue being recurring and a 67% gross profit margin. I think these statistics bode well for the foreseeable future.

Bailador recently told investors what its portfolio is worth as of 31 May 2025. The figure accounted for increases in valuation the several of its businesses including Updoc, Access Telehealth and Hapana.

It now has a pre-tax NTA per share of $1.81 and a post-tax NTA per share of $1.65. The current Bailador share price is trading at a huge 28% discount to the post-tax NTA. I think this is a great time to invest in Bailador before its upcoming FY25 dividend payment and any further rate cuts.