The FTSE 100 may be at a record high, but not all UK shares are expensive. Far from it. In fact, the small-cap space is packed with cheap stocks at which investors might want to take a closer look.

Here are three of them.

Ashtead Technology

The first is Ashtead Technology (LSE: AT.), which rents out subsea equipment to the global offshore energy sector. The stock has been a horror show this year, falling 40%.

One key problem is that global instability is negatively impacting large-scale energy projects and investment decisions. With tariff uncertainty persisting, these issues could drag on into next year.

For long-term investors though, I think there may be an opportunity here. The £266m market-cap firm is proactively reducing its exposure to low-margin equipment sales, which will cause a short-term revenue dip. But this strategic move should improve profitability in the long run.

Moreover, revenue is still expected to increase 23% to around £206m this year, which isn’t too shabby considering the challenging environment. Most of Ashtead Technology’s equipment can be used for either offshore oil and gas or renewable energy projects. This provides resilience, as does its global presence.

Following the fall, investors can pick up the shares for just 7.5 times forecast 2025 earnings. While trading is volatile now, I think there’s every chance this stock could bounce back when the smoke clears.

Windar

Sticking with the renewables theme, Windar Photonics (LSE:WPHO) looks interesting. The Danish company, which has a small £57m market cap, designs and sells sensors that help wind turbines detect wind direction and speed more accurately. This helps the blades adjust for maximum efficiency and power output.

This year, revenue is expected to jump around 109% to €9.5m, as the firm wins more contracts to retrofit its systems onto turbines. What I like here is that the company is also expected to turn profitable this year.

Based on forecasts for 2026, the forward-looking price-to-earnings multiple is 15.5. This translates into a price/earnings-to-growth (PEG) ratio of 0.2. For context, a PEG ratio between 0.5 and 1 is considered good value.

Of course, the lack of consistent profitability adds risk, as does Windar’s small size. And while the balance sheet looks fine now, the firm may need to tap shareholders for cash in future.

Warpaint

The final stock is Warpaint London (LSE:W7L). This an affordable cosmetics supplier behind brands like W7 and Technic.

The shares are down 40% year to date, giving the firm a £252m market cap.

Last year, group sales grew 13% to £102m, with earnings per share jumping 29% to 23.5p. However, management warned of a slowdown in its US business this year, largely due to higher tariffs. These are a risk in this industry because it could lead to higher prices, heaping even more pressure on inflation-weary consumers. 

However, Warpaint says that overall group sales are being achieved at a significantly higher margin than last year. And double-digit growth on both the top and bottom lines is still expected this year. Warpaint might even be able to take market share due to its value proposition.

After the share price slump, the stock looks attractively priced, with a forward P/E ratio of 10.7. There’s also a well-covered 3.5% dividend yield on offer.

Overall, I like the risk/reward set-up here.