Definition for : Value stock

Value Stock is a company at the Maturity stage of its development, which has limited Investment needs. Such companies tend to pay out an increasingly larger Share of their profits in the form of dividends. These companies usually exhibit a low price-to-Book ratio and Price-to-earnings ratio.

(See Chapters Chapter 15 The financial markets, Chapter 18 Risk and return and Chapter 23 Options of the Vernimmen)

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