Investment dictionary

VALUE STOCK

Value Stock: translation

A stock that tends to trade at a lower price relative to it's fundamentals (i.e. dividends, earnings, sales, etc.) and thus considered undervalued by a value investor. Common characteristics of such stocks include a high dividend yield, low price-to-book ratio and/or low price-to-earnings ratio.

A value investor believes that the market isn't always efficient and that it's possible to find companies trading for less than they are worth. An easy way to attempt to find value stocks is to use the "Dogs of the Dow" investing strategy - buying of the 10 highest dividend-yielding stocks on the Dow Jones at the beginning of each year and adjusting it every year thereafter.

  1. value stock—value stock translation stocks with low pricebook ratios or priceearnings ratios. Historically value stocks have enjoyed higher average returns than growth stocks stocks ...Financial and business terms
  2. value stock—фин. стоящая акцияu акция недооцененная на фондовом рынке т. е. акция характеризующаяся низкими котировками по отношению к балансовой стоимости активов кампании в расчете...Англо-русский экономический словарь