Large-Value Stock


DEFINITION of 'Large-Value Stock'

A type of large-cap stock investment where the intrinsic value of the company's stock is greater than the stock's market value. The stock's intrinsic value can be determined by using a valuation model such as discounted cash flow and multiples.

BREAKING DOWN 'Large-Value Stock'

A stock's market value can fall below its intrinsic value for a number of reasons.

For example, if a company seeks Chapter 11 bankruptcy protection, many shareholders could become concerned that the company will go bankrupt, and therefore sell their stock. If the company has enough assets to pay all of its liabilities, then there will be intrinsic value left in the company's stock. This value may be greater than the stock's market value, which results in a large-value-stock investing opportunity.

  1. Discounted Cash Flow (DCF)

    Discounted cash flow (DCF) is a valuation method used to estimate ...
  2. Equity

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  3. Warren Buffett

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  4. Interlisted Stock

    A security that is listed on multiple stock exchanges. An interlisted ...
  5. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
  6. Intrinsic Value

    Intrinsic value is the actual value of a company or an asset ...
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