Value Investing Definition

Value investing is an investment strategy focused on buying securities that appear undervalued relative to their intrinsic worth.

What is Value Investing?

Value investors typically look for companies trading below their estimated fair value based on fundamentals.

This strategy often involves a longer-term investment horizon compared with short-term trading approaches.

An investor buying shares in a company trading well below its estimated fair value is practicing value investing.

The VIX is an index that measures expected volatility in the U.S. stock market based on S&P 500 index options.

Volatility refers to the degree of variation in an asset's price over a given period of time.

Volume is the total number of shares, contracts, or units of an asset traded during a specific period.