Value investing is an investment strategy where the investor is buying securities which he thinks are worth more than their current price. This means the current price on the exchange is lower than the intrinsic or book value of the respective security. These evaluations are called fundamental analysis and are mostly derived from the current balance sheet and the respective quarterly updates. Some of the more prominent measures used by value investors to determine if a company’s stock is a value investment are: – price-to-book ratio – earnings-per-share – free cash flow – dividend yield Obviously, there are many other