The trick for anyone using the value investing stock strategy is to find the true value of the company as opposed to its "market value." A number of factors are used to determine the true value of a company and each investor will have his or her own "winning formula." Two common valuation metrics for value investors are the P/E ratio and PEG.
Source: http://www.investorguide.com/igu-article-977-stock-strategies-buying-stocks-using-growth-strategy.html
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