Value Stocks

What Is a Value Stock?

A value stock refers to shares of a company that appears to trade at a lower price relative to its fundamentals, such as dividends, earnings, or sales, making it appealing to value investors.

A value stock can generally be contrasted with a growth stock.


  • A value stock is trading at levels that are perceived to be below its fundamentals.
  • Common characteristics of value stocks include high dividend yield, low P/B ratio, and a low P/E ratio.
  • A value stock typically has a bargain-price as investors see the company as unfavorable in the marketplace.

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