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Large-Value Stock

What is 'Large-Value Stock'

A type of large-cap stock investment where the intrinsic value of the company's stock is greater than the stock's market value. The stock's intrinsic value can be determined by using a valuation model such as discounted cash flow and multiples.

Explaining 'Large-Value Stock'

A stock's market value can fall below its intrinsic value for a number of reasons.

For example, if a company seeks Chapter 11 bankruptcy protection, many shareholders could become concerned that the company will go bankrupt, and therefore sell their stock. If the company has enough assets to pay all of its liabilities, then there will be intrinsic value left in the company's stock. This value may be greater than the stock's market value, which results in a large-value-stock investing opportunity.


Further Reading


Growth versus value and large-cap versus small-cap stocks in international markets
www.tandfonline.com [PDF]
… C. Mitchell Conover is an assistant professor of finance at the University of North Carolina at Wilmington. I … empirical research about the US stock market, relatively little research has been published regarding the performance of value and growth stocks in the stock markets of …

The value of the voting right: A study of the Milan stock exchange experienceThe value of the voting right: A study of the Milan stock exchange experience
academic.oup.com [PDF]
… C. Mitchell Conover is an assistant professor of finance at the University of North Carolina at Wilmington. I … empirical research about the US stock market, relatively little research has been published regarding the performance of value and growth stocks in the stock markets of …

Rationality of negative stock-price responses to strong economic activityRationality of negative stock-price responses to strong economic activity
www.tandfonline.com [PDF]
… C. Mitchell Conover is an assistant professor of finance at the University of North Carolina at Wilmington. I … empirical research about the US stock market, relatively little research has been published regarding the performance of value and growth stocks in the stock markets of …

The role of equity funds in the financial crisis propagationThe role of equity funds in the financial crisis propagation
academic.oup.com [PDF]
… C. Mitchell Conover is an assistant professor of finance at the University of North Carolina at Wilmington. I … empirical research about the US stock market, relatively little research has been published regarding the performance of value and growth stocks in the stock markets of …

Non‐linear predictability of value and growth stocks and economic activityNon‐linear predictability of value and growth stocks and economic activity
onlinelibrary.wiley.com [PDF]
… C. Mitchell Conover is an assistant professor of finance at the University of North Carolina at Wilmington. I … empirical research about the US stock market, relatively little research has been published regarding the performance of value and growth stocks in the stock markets of …

Systemic risk and financial consolidation: Are they related?Systemic risk and financial consolidation: Are they related?
www.sciencedirect.com [PDF]
… C. Mitchell Conover is an assistant professor of finance at the University of North Carolina at Wilmington. I … empirical research about the US stock market, relatively little research has been published regarding the performance of value and growth stocks in the stock markets of …

Does bank efficiency matter? Market value relevance of bank efficiency in AustraliaDoes bank efficiency matter? Market value relevance of bank efficiency in Australia
www.tandfonline.com [PDF]
… C. Mitchell Conover is an assistant professor of finance at the University of North Carolina at Wilmington. I … empirical research about the US stock market, relatively little research has been published regarding the performance of value and growth stocks in the stock markets of …



FAQ


What is value investing?

Value investing is an investment paradigm that involves buying securities that appear underpriced by some form of fundamental analysis.

What are the various forms of value investing?

The various forms of value investing derive from the investment philosophy first taught by Benjamin Graham and David Dodd at Columbia Business School in 1928, and subsequently developed in their 1934 text Security Analysis.

Who were Graham and Dodd?

Graham and Dodd were two professors at Columbia Business School who wrote a book called Security Analysis.

What was Security Analysis about?

Security Analysis was about how to find undervalued stocks using fundamental analysis.

How did Graham and Dodd define security analysis?

They defined security analysis as "the process of estimating the intrinsic value of stocks with the objective of purchasing them when they are trading below their intrinsic values".

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