The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results.

Value investing definition

Value investing means seeking out assets like shares, that are priced below their long-term intrinsic value, and therefore potentially have the best growth potential in terms of price.

Value investing definition

Value investing means seeking out assets like shares, that are priced below their long-term intrinsic value, and therefore potentially have the best growth potential in terms of price.

Value investors are therefore seeking out stocks, or other assets that they believe the market is currently undervaluing, but will at a point in the future start to add value. 

Value investors may use a variety of metrics to decide whether a stock is undervalued, including looking for price-to-book, or price-to-earnings ratios that are below the average for the sector or market or long-term, or looking at estimations of future growth or cash flow.

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