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

Total Return

This is the measurement of a fund’s performance in a specific period.
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Net Asset Value (NAV)

The value of a company's assets relative to the number of shares it has.
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DMO

The United Kingdom Debt Management Office. It’s an executive agency responsible for managing the government’s debt and cash needs, primarily through issuing gilts and Treasury bills.
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UK Treasury bill

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

Learn what Beta stands for in finance.
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Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).
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Lock-up period

The period after an IPO when insiders have to sit on their hands and can’t sell their shares.
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Quick ratio

Learn what quick ratio stands for in financial terms and how to calculate it.
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Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.
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