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Strategies & Market Trends : Fundamental Value Investing

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To: The Ox who wrote (1819)7/11/2012 10:45:52 PM
From: tyc:>  Read Replies (1) of 4719
 
An answer to your post lies in the definition of "growth" and "value".

Haugen's definitions are simple:

Value: A value stock is one whose earnings are expected to grow at a below average rate.

Growth: A growth stock is one whose earnings are expected to grow at a rate above average.

It is, of course, higher expectations that lead to popularity and higher p/e ratio's.
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