Value Investing is an investment strategy, for which investors like to buy:
Near book value – total assets minus intangible assets (patents, goodwill) and liabilities
Low valuation ratios – e.g. P/E ratio, which compares the current price of company’s shares to the amount of earnings it generates
High dividend yields – ratio of company’s dividends to its share price
Value Investing is the opposite of Growth Investing.
My Take
Portfolios should be constructed with a balance between value and growth securities.
References
Investopedia – Book Value
Investopedia – Investment Valuation Ratios