Value InvestingValue investing is the process of getting into undervalued stocks. A value investor would get into strong companies whose stock has not been given noticed by the market.
Value investing is basically getting a stock at a discount. To do this you have to figure out how much you believe the stock should be trading at, this price is called the intrinsic value. The intrinsic Value is based off of the earnings, assets, and future growth of the company. Not all investors will agree with what the intrinsic value of a company should be. This is because every investor weight things differently. For example some value investors will factor in future growth while others will disregard it and only look at the current value of a company. |
