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Financial Statement Analysis — Growth vs Value Investing
Growth and value are two data-driven philosophies. Value stocks trade below intrinsic value on low P/B, P/E, and EV/EBITDA and tend to outperform over long horizons when bought with a margin of safety, while growth stocks command premium multiples justified by above-average revenue CAGR and an expanding TAM. The PEG ratio normalizes P/E for growth, and the Fama-French three-factor model shows value and small-cap premia are historically persistent. This module also explains how rate cycles drive style rotation.
⏱ 17 minModule A2.7
// What you'll learn
- Growth and value are two data-driven philosophies.
- Value stocks trade below intrinsic value on low P/B, P/E, and EV/EBITDA and tend to outperform over long horizons when bought with a margin of safety, while growth stocks command premium multiples justified by above-average revenue CAGR and an expanding TAM.
- The PEG ratio normalizes P/E for growth, and the Fama-French three-factor model shows value and small-cap premia are historically persistent.
- This module also explains how rate cycles drive style rotation.
// Full access
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