What is 'value investing'? Definition & meaning

The art of buying shares which trade below their value, according to the analysis of the value investor.

More terms

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.

United States Dollar (USD)

The famous greenback our friends in the US use as currency.

Time-Weighted Rate of Return (TWRR)

A return calculated over the time period invested, that excludes extraneous elements, such as deposits to and withdrawals from the investment accounted.

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Balance sheet

A summary of a company's finances, including its assets, liabilities and shareholder equity.

Accrued interest

The interest earned on a gilt since the last dividend date. When buying a gilt, the buyer pays the accrued interest at the time of a transaction to the seller in addition to the clean price of the gilt

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

Value Investing