GVSRwealth: Investing Perspectives: Growth Vs Value Investing Styles

 

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.