Value Stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

These are stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable. The stock price might be less than what the company is actually worth.

Investors choose value stocks because they expect the market to realise the true value of the stock over time, and the price will rise.

Value stocks tend to have a lower price-to-earnings (P/E) ratio, pay dividends, and are seen as lower risk with steadier returns. Please keep in mind that no stocks are risk free and you may lose what you put in.

Older, established companies like banks, manufacturers, or consumer goods firms are typically where you will find value stocks.

More terms

Money weighted rate of return

Learn what Money Weighted Rate of Return or MWRR stands for in finance.
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Stock Exchange

A physical/digital place where stockbrokers and traders can buy and sell securities.
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Xetra

A trading venue operated by the Frankfurt Stock Exchange.
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Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.
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Leverage

A method of trading using borrowed money that usually involves a very high level of risk.
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Net asset value

Mutual funds and investment trusts are priced on their net asset value (NAV).
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Alpha

The percentage by which an investor outperforms a relevant benchmark.
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Gilt

What is a gilt?
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Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.
Read more

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