STRATEGY • GUIDE

Growth vs Value Stocks Explained

Understand growth and value styles and why the labels can overlap.

Growth emphasises expansion in earnings or cash flows; value often emphasises price relative to underlying or normalised value.

Growth

Study market opportunity, reinvestment returns, competitive position and durability.

Value

Study normalised earnings, assets, cash flows, catalysts and what the market may be discounting.

Overlap

A company can be high growth and undervalued, or slow growth and expensive. Labels are not verdicts.

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