Value Investing

This method of stock picking is in marked contrast to growth investing.

The value approach is more concerned with picking up a bargain where a share price has fallen below the value that you might expect from key criteria such as its earnings potential.

A value investor believes that some shares have been over-sold and that the stock market is not reflecting their true value.

For example a company may have a low Price/Earnings (P/E) ratio or a high dividend yield could appeal to a value investor. See Digital Look's Glossary and Stock Selection feature for more information.