Value Stock

A value stock is a stock that appears undervalued compared to its financial performance and intrinsic worth. These stocks typically have low price-to-earnings (P/E) ratios, high dividend yields, and strong fundamentals but are overlooked by the market.

Characteristics of Value Stocks:

• Traded at a discount relative to earnings, book value, or cash flow
• Often belong to established companies with steady profits
• Provide dividends, offering passive income to investors

Value investing strategies focus on buying stocks when they are undervalued and holding them long-term for potential price appreciation.