value investing


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Value investing

In the context of asset management, mutual funds, and hedge funds, the a style of investment that focuses on securities with low price to earnings ratios or low price to book ratios. Some of these securities are deemed cheap and are viewed by manager as having a lot of profit potential.

Value Investing

An investment strategy in which one seeks securities thought to be undervalued. One may do this in a variety of ways, but two of the most popular are finding companies with low P/E ratios or low price-to-book ratios. In both cases, the stock price for a company is lower than its earnings per share or its asset value per share. These companies are thought to have high profit potential. Analysts disagree on the tools for value investing, but most use some form of fundamental analysis and look for companies with an underlying value of more than its price. See also: Buy and hold.

value investing

The selection of securities to be bought and sold on the basis of the value of a firm's assets. For example, an investor may look for a stock in which current assets exceed total liabilities on a per share basis by more than the market price of the stock. Value investing emphasizes asset value more than earnings projections. See also asset value.
References in periodicals archive ?
ABSTRACT: Within the Austrian economists' community, value investing is characterized as a useful investment strategy, and one that is in line with Austrian economics, in particular Austrian value theory.
Instead of growth investing, many fund managers, including the legendary Warren Buffet, opt for value investing instead.
6 per cent CAGR [compounded annual growth rate] in the past 10 years a new research shows there are enough opportunities for value investing that could unlock returns far in excess of standard benchmarks.
Applying the Smart Alpha Value Investing framework based on the Graham-Buffett way to the S&P GCC Composite Index, the Arthveda Capital analysis note said that oil and gas sector was in the lowest rung as a potential sector for investments.
The next day I started reading about value investing.
Summary: Nimesh Shah , MD & CEO, ICICI Prudential AMC, talks to Mahesh Nayak about the importance of value investing and his company's performance, among other things.
If your goal in life is to get rich, value investing is pretty hard to beat.
Value investing must be the most talked about investment philosophy on the planet.
Several academic papers such as those by Oppenheimer (1984), Piotroski (2000), Beukes (2011), and Sareewiwatthana (2011) have tested the performance of this investment philosophy, screenings companies with certain financial indicators, as a proxy for value investing.
Self-managed investors require a tool that integrates various value investing dynamics including cash on hand, past earnings per share growth sales, dividend trace, debt equity ratios, and other aspects that are essential ingredients in arriving at a good value investment
THIS IS A story about value investing and risk: specifically, the risk inherent in value investing and how to manage it.
In the conventional funds universe value investing as an investment paradigm was promulgated by Ben Graham and David Dodd at Columbia Business School in the late 1920s, and codified in their book Security Analysis, published in 1934.