Value stocks are equities that are considered undervalued or trading at a lower price relative to their intrinsic value, earnings, book value, or fundamental metrics compared to other stocks in the market. Value stocks typically have lower price-to-earnings (P/E) ratios, price-to-book (P/B) ratios, or price-to-sales (P/S) ratios and may offer higher dividend yields or lower price-to-cash flow (P/CF) ratios compared to growth stocks or the overall market. Value investing is based on the principle of buying stocks at a discount to their intrinsic value or perceived worth, assuming that the market has undervalued the company's fundamentals or growth prospects, and anticipating that the stock price will eventually reflect its true value over time. Value investors seek opportunities in out-of-favor sectors, cyclical industries, or companies with temporary setbacks, turnaround potential, or unrecognized assets, employing fundamental analysis, financial metrics, and valuation techniques to identify undervalued stocks, assess their margin of safety, and estimate their upside potential. Value stocks may offer attractive long-term investment opportunities for value-oriented investors seeking capital preservation, income generation, and favorable risk-return profiles, provided that the underlying fundamentals, earnings growth, and market conditions support the valuation thesis and potential price appreciation.