Value stock

Value Stocks

Stocks with prices lower than their intrinsic value. One may identify value stocks 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 because it is thought that the share price will eventually rise to match the company's real value. See also: Buy and hold, Warren Buffett, Benjamin Graham.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Value stock.

Value stocks, also known as undervalued stocks, trade at a lower price than the company's reputation, earnings outlook, or financial situation would seem to merit.

Investors who seek them out expect the company's fortunes to turn around, and the price of the stock to increase accordingly.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
A value stock is one in which the company's parts are worth more than the whole.
Given these numbers, Fairfield's book value stock price is roughly $7.80 per share.
Does this mean DISH is a good "value stock" right now?
At least part of the recent volatility in Apple's stock has to do with investors grappling with the company's transition away from its long-held status as a growth stock to a value stock.
They have also been collecting interesting and high value stock and taking it to their nearest Save the Children store.
The expense calculation encouraged by SFAS 123 requires companies to value stock options using a mathematical model that considers six variables:
Zacks continues, "One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process."
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So, as of January 1990, plan participants had five investment options (growth stock fund, value stock fund, guaranteed income fund, intermediate bond fund, and company stock fund).
For example, if you sell a Large Value stock fund at a loss and immediately buy a different Large Value stock fund, the wash sale rule will not apply.
After understanding the difference between a growth stock and a value stock, and what a stock's price-to-earnings ratio is, he began to consider the types of investments he wanted to make.
New products introduced over the last week include Vanguard's planned launch of two new international funds and ETFs; an emerging markets value stock fund from T.