A value stock is a stock of that company whose business has more value than what is being given by the market. for example if the value of business is currently calculated at 400 and the stock is currently trading at 600 then that stock will be called undervalued and if this business is strong and also has competitive advantage then it will be called a value stock. now the question is how to find a value stock. to find a value stock we first need to find the value of business there multiple method to value a business or a stock. like
DCF method
Book value method
PE method
EBIDTA method
Option based valuation method
you can go through this article to read all those methods.
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