Equity

Value Investing

Definition

An investment strategy focused on buying stocks that appear undervalued relative to their intrinsic value based on fundamental analysis, with the expectation that the market will eventually recognize fair value.

Example
Value investors use metrics like P/E, P/B, and free cash flow yield to identify underpriced stocks.
Related Terms
Fundamental Analysis Intrinsic Value P/B Ratio (Price-to-Book) Price-to-Earnings Ratio (P/E Ratio)
Frequently Asked Question
What is Value Investing?
Value investing buys stocks trading below intrinsic value. Popularized by Benjamin Graham and Warren Buffett, it focuses on P/E, P/B, FCF, and margin of safety. Patience is essential.
APA Citation
Clark, R. (2025). Value Investing. VixShield Trading Glossary. Retrieved from https://www.vixshield.com/glossary/value-investing
RC
Russell Clark, FNP-C
Author of SPX Mastery series · Founder of VixShield
Last updated:  ·  Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.