Value Index(redirected from Value Indexes)
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An index tracking value stocks, which are stocks with prices lower than their intrinsic values. One may identify stocks for a value index 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 share price for a company is lower than its earnings per share or its asset value per share. Value indices may have high profit potential because it is thought that the share prices will eventually rise to match the stocks' real value.