Value investing is an investment strategy that involves buying securities that are believed to be undervalued by the market. This can involve purchasing stocks that are trading at a lower price than their intrinsic value, which is the true value of a company based on its earnings, dividends, and other fundamental factors. The goal of value investing is to identify undervalued securities and hold them for the long term, in the hopes that the market will eventually recognize their true value and the price will increase.
Value investors generally rely on fundamental analysis to identify undervalued securities. This involves examining a company's financial statements, management team, and competitive position and growth prospects in the market. They may also consider industry and economic trends, as well as the overall market environment. By analysing these factors, an investor can gain a better understanding of the company's financial health and future performance potential. Fundamental analysis can be used to make investment decisions, such as whether to buy or sell a particular stock, or to determine the fair value of a security. The best approach for any given investor should depend on their investment goals, risk tolerance, and individual style. This course is organized into six different sections to help you to identify stocks to invest in Indian markets context.