What Is a Value Stock? - TheStreet Definition

Dictionary of Financial Terms

Similar to beauty, value is in the eye of the beholder. A value stock is one where the current share price is lower than the value as calculated by the investor. Common valuation techniques include the dividend discount model (DDM), fundamental ratios such as price-to-earnings or dividend yield, and leveraged buyout valuations based on cash flow or EBITDA.

Definitions of Financial Terms