# What is Bargain Hunting or Value Investing?

**URL:** https://tradingqna.com/t/what-is-bargain-hunting-or-value-investing/1403
**Category:** General
**Created:** [October 13, 2014, 11:40am UTC](https://tradingqna.com/t/what-is-bargain-hunting-or-value-investing/1403 "2014-10-13T11:40:07Z")
**Posts on this page:** 2
**Page:** 1

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### Author: ![suchetha](https://tradingqna.com/user_avatar/tradingqna.com/suchetha/32/129_2.png) [@suchetha](https://tradingqna.com/u/suchetha)
#### Post date: [October 13, 2014, 11:40am UTC](https://tradingqna.com/t/what-is-bargain-hunting-or-value-investing/1403/1 "2014-10-13T11:40:07Z")

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Popular Equity Investment strategy

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### Author: ![surajsuresh](https://tradingqna.com/user_avatar/tradingqna.com/surajsuresh/32/152_2.png) [@surajsuresh](https://tradingqna.com/u/surajsuresh)
#### Post date: [October 13, 2014, 5:30pm UTC](https://tradingqna.com/t/what-is-bargain-hunting-or-value-investing/1403/2 "2014-10-13T17:30:54Z")

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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&nbsp;by&nbsp;some types of&nbsp;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.&nbsp;Another concept of value investing is "margin of safety" which&nbsp;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&nbsp;and don't estimate on future growth,&nbsp;where as other value investors base their strategies around estimation of future growth and cash flow.**

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