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.

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.

References in periodicals archive ?
Since investment in value stocks, under-priced stocks, do usually have lower value than investment in glamour stocks, over-priced stocks, do, negative earnings surprises due to accounting irregularities would decrease value stock prices more than glamour stock prices.
minority and marketability discounts) apply to value stock when used as a bonus to transfer ownership.
Conversely, a value stock represents a company whose financial position, as well as industry and economic conditions, indicates that its true value is higher than the stock price.
A value stock is one in which the company's parts are worth more than the whole.
For example, while Merck (NYSE: MRK) might not be considered a typical value stock, it has been beaten down, so its price relative to its future earnings potential makes it a less expensive drug company to own, he says.
Another value stock expert in attendance was Nathaniel Carter, president and chief investment officer of Lakefront Capital Investors, a Cleveland money management firm running $20 million in institutional assets and the newly minted Key Victory Lakefront Fund to boot.