Value stocks are usually issued by established companies which have shown an ability to profit. Their price is low compared to their fundamentals, including dividends, earnings, assets, etc. Common features of value stocks are:
- Higher dividend yield. Value stocks tend to show a lower growth rate than the market average in a robust economy. However, their earnings are often steady, generating high dividends compared to their prices.
- Low P/E and P/B ratio. Value stocks are undervalued. Their prices are low compared to the earnings and book value, which means the market is unwilling to pay for their worth.

