Value investing is a long-term, conservative approach to investing. When you invest in value stocks, you’re looking to buy and hold companies whose share prices are currently lower than their intrinsic value.
To calculate intrinsic value and determine good buys, value investors analyze the fundamentals of a company’s performance—things like earnings, revenue, cash flow and price-to-earnings ratios, along with a host of other financial information.
By identifying and purchasing stocks priced by the market below their intrinsic value, value investors aim to profit when the broader market in time also recognizes that the stocks are underpriced. If their fundamental analysis is correct, the value stocks should rise in price, earning them decent returns. Read more…..
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