Investing in ASX value shares // The Motley Fool Australia
What are ASX value shares?
Value stocks are companies that are perceived to be trading at bargain prices relative to their underlying business performance. Perhaps they have been unfairly punished by the market because of recent negative publicity, a one-off lousy result, or they just operate in a less popular sector of the economy.
Therefore, value shares possess more robust fundamentals than their current share prices would otherwise indicate. In other words, these shares are trading on the stock market for less than their intrinsic value (potentially presenting an ideal buying opportunity).
Why invest in them?
The idea underpinning value investing is that, over time, stock prices will reflect their…
