What Is Value Investing? Value investing is a type of investment strategy in which investors act like bargain hunters looking for a deal. Value investors actively look for companies that are undervalued by the stock market. When an investor finds a company they feel is undervalued by the market, they make their move to invest. But, to get to that point, the investor must be confident that the company will provide returns that outperform their current market valuation over the long-term Finding The Intrinsic Value Of A Stock Value investing may sound like a great strategy. After all, who wouldn’t want to buy undervalued companies for substantial investment returns?
But knowing what to look for in an undervalued stock is an important piece of the puzzle. As a value investor, you aren’t looking at the media when making your valuation decision. Instead you're drilling down into the finances of a company to determine its intrinsic value.