Popular Equity Investment strategy
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Value investing is the strategy of selecting stocks that trade less than their intrinsic value. Value investors select stocks that are undervalued by some types of fundamental analysis like stocks trading at a discount to its book value, have high dividend yields, low PE multiples or low price to book ratio. Another concept of value investing is "margin of safety" which means that you buy at a big enough discount to allow some room for error in your estimation of value. Value investing is subjective because some investors look at the preset assets and earnings and don't estimate on future growth, where as other value investors base their strategies around estimation of future growth and cash flow.
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