Value Companies – Undervalued Stocks for Long-Term Investors
Value companies (value stocks) are businesses whose market price is low relative to their earnings, assets or cash flow. The goal of value investing is to find undervalued companies before the market reprices them to a higher level.
On Sijoittajatieto.fi you can compare valuation multiples, track key ratios and build your own value portfolio. Register for free and start value investing.
Featured value companies
Nokia Corporation
€7.35
+2.88%
Fortum Corporation
€22.63
+6.14%
Sampo Plc A
€9.25
+0.59%
Nordea Bank Abp
€15.15
-0.53%
Kemira Oyj
€19.30
+0.26%
UPM-Kymmene Corporation
€26.71
-1.29%
EQUINOR
NOK 399.10
-5.07%
Carlsberg B A/S
DKK 820.00
+2.09%
Coca-Cola Company (The)
$76.72
+0.84%
Johnson & Johnson
$243.04
-0.44%
JP Morgan Chase & Co.
$294.60
-0.26%
SHELL PLC ORD EUR0.07
£3,543.50
+2.90%
What is value investing?
Value investing involves looking for companies whose share price is lower than their true long-term value. Such situations can arise from market fear, a weak economic cycle or a temporary earnings disappointment.
- •Low P/E ratio
- •Low P/B ratio
- •Stable business model
- •Often good dividend yield
Advantages of value companies
- •Margin of safety – the share price often includes fewer expectations
- •Potential for share price appreciation through repricing
- •Often dividend income for the investor
Many traditional industrial, banking and energy companies are often classified as value companies. Explore sectors in more detail on the sector page.
Risks of value companies
Not all low-priced companies are good investments. Sometimes a low valuation reflects real problems in the business.
- •Weak competitive position
- •Structural challenges in the industry
- •Prolonged slow growth
That is why a low valuation alone is not enough – investors must also assess the company's future prospects.
Where to find value companies?
Value companies can be found in all markets:
Value companies are often found in cyclical sectors where market sentiment fluctuates strongly.
Building a value portfolio
A good value portfolio includes several different sectors and companies. Diversification reduces risk and increases the probability that some investments benefit from market repricing.
On Sijoittajatieto.fi you can:
- •Compare valuation multiples
- •Track earnings development
- •Build your own value portfolio
- •Add companies to a watchlist
Create a free account and build your own value portfolio
Compare valuation multiples, track key ratio development and find the market's undervalued gems — for free.