Financial Quotient

What is value investing?

New: Gift this subscriber-only story to your friends and family

Value investing is an investment style that seeks firms whose stock prices do not reflect their intrinsic or fundamental value. Value investors believe markets are inefficient, which creates this mispricing.

They try to identify firms they consider undervalued but are expected to come back in the future, often going against contemporary market sentiment.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.

A version of this article appeared in the print edition of The Sunday Times on May 13, 2018, with the headline What is value investing?. Subscribe