Value investing is a strategy used by investor that focusses on looking for stocks that are currently undervalued. This means that investors look for stocks that have a higher intrinsic value compared to the market price it is selling for. Investors determine whether a stock is undervalued or not by doing a fundamental analysis of the company, in which an investor looks at a stock’s P/E Ratio (link), P/B Ratio and many other valuation aspects.
Value investing is a highly profitable way of investing in stocks when performed correctly. Value investing used by some of the most successful investors such as Warren Buffett and Ben Graham.