GVSRwealth: Investing Perspectives: Growth Vs Value Investing Styles

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Growth & Value Investment Strategies: – A point of View (PoV)

S.No

Key

Attribute

Growth

Businesses

 

Value 

Businesses

 

1.

Long-term Earnings Growth potential

High

 

Low

2.

Business Model Innovation

Strong

Weak

3.

Competitive Landscape

Few Players

Differentiated Business Strategies

Too many players-Price

Sensitive market

 

 

4.

Return Ratios

(ROEs / ROCEs)

Strong

Average to Weak

5.

Market Cap

Low to Medium

Can vary

6.

Valuations (PEs etc.)

Fair to High

Low

Remarks: There is no strict definition of Growth Vs Value in terms of threshold values or rules. It is a conceptual investment style adopted by many Fund Managers. A business that is in its growth phase can occasionally fall into Value zone and Vice-versa. Businesses can turn-around their prospects through innovations and get back to winning ways. You must smell the coffee, so to speak!

 

Disclaimer:

(i)This article is prepared for information and educational purposes only.

(ii)All Investments in securities market are subject to market and business risks. Please read all the related documents carefully, before investing. SEBI registration as Research Analyst (RA) or certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

 

 

GVSRwealth is the trade-name used by Mr. Venkata Subrahmanyam Gutala (GVS) who is registered with SEBI as the Research Analyst. He is from IIM-Bangalore, with specialisation in Finance. GVS was also a former Partner at PwC India and Grant Thornton India, respectively. He has about 7 years of Investment Advisory exp. to date

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