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Value Stock
Term category: Stocks
In 10 words or less: A type of stock that is believed to be worth more than what it is currently trading for.

Definition: A stock that is "undervalued" according to a typical value investor. This is determined by using a number of valuation techniques.

StockJargon Advice: Value investors believe the market is inefficient, meaning that stocks aren't trading at what their true price should be. So there's hidden value in some stocks.

Some popular ways to find value stocks involve using the price/book ratio, dividend discounting, etc.

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