Growth vs Value Investing
Two styles: growth buys fast-expanding companies at higher prices; value buys cheaper companies the market overlooks.
What it is
Growth investing and value investing are two broad styles for picking stocks. Growth investors favor companies expanding revenue and earnings quickly and are willing to pay a high multiple for that future expansion. Value investors look for companies trading below what they judge the business is worth, often slower growers priced cheaply on metrics like price-to-earnings or price-to-book.
Why it matters
Knowing which lens you are using keeps you consistent and helps you avoid contradictory expectations — like demanding both rapid growth and a bargain price. The two styles also tend to perform differently across market and interest-rate environments, so the distinction affects portfolio behavior.
How it's calculated
There is no single formula; it is a framework. To lean value, screen for low valuation multiples (low price-to-earnings, low price-to-book, high dividend yield) and check that the low price reflects a temporary problem, not permanent decline. To lean growth, screen for high revenue and earnings growth rates and a large market opportunity, then judge whether the premium price is justified by durable expansion. Many investors blend the two, looking for reasonable growth at a fair price (sometimes called GARP).
How Quintarthai uses it
Use the Stock Screener with AI Smart Search to filter by growth rates or valuation multiples and build either a growth or value watchlist.