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Value Stock - Definition
Below, you'll find a definition of this investing term...

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

TeenAnalyst 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.

 

Related Sections on Our Website

Investing - Learn more about investing basics and strategies.

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