Large-Value Stock

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Interlisted Stock

    A security that is listed on multiple stock exchanges. An interlisted ...
  2. Equity

    1. A stock or any other security representing an ownership interest. ...
  3. Warren Buffett

    Known as "the Oracle of Omaha", Buffett is Chairman of Berkshire ...
  4. Discounted Cash Flow - DCF

    A valuation method used to estimate the attractiveness of an ...
  5. Intrinsic Value

    1. The actual value of a company or an asset based on an underlying ...
  6. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
Related Articles
  1. Markets

    How To Use Price-To-Sales Ratios To Value Stocks

    Take a look at how this effective ratio can be influenced by certain critical factors.
  2. Investing

    Using DCF In Biotech Valuation

    Valuing firms in this sector can seem like a black art, but there is a systematic way to pin a price on potential.
  3. Mutual Funds & ETFs

    Understanding The Mutual Fund Style Box

    Evaluate your investments with this simple tool.
  4. Markets

    Investment Valuation Ratios

    Learn about per share data, price/book value ratio, price/cash flow ratio, price/earnings ratio, price/sales ratio, dividend yield and the enterprise multiple.
  5. The Vanguard S&P 500 ETF (VOO) offers a relatively safe investment opportunity for people who aren't sure which way the market is headed.
    Mutual Funds & ETFs

    Will Stock Market VOOdo Continue?

    The Vanguard S&P 500 ETF (VOO) offers a relatively safe investment opportunity for people who aren't sure which way the market is headed.
  6. Trading Strategies

    How do traders interpret a Downside Tusuki Gap pattern?

    Understand the logic and rational behind a downside Tasuki gap candlestick pattern, which traders look to as a bearish continuation signal.
  7. Chart Advisor

    A Total Stock Market ETF For Any Portfolio

    Utilizing index funds and ETFs, such as Vanguard's VTI, is one of the best ways for the average investor to track the broad markets and minimize fees.
  8. Fundamental Analysis

    What is the difference between enterprise value and equity value?

    Valuating a business accurately depends heavily on the purpose of the valuation. Learn how enterprise value and equity value can help clarify valuations.
  9. Fundamental Analysis

    What's the difference between enterprise value and market capitalization?

    Learn the difference between two commonly utilized valuation tools: market capitalization and enterprise value, and see how each is used in value investing.
  10. How did Warren Buffett get to be the richest investor in America? A little luck, a lot of pluck and a head for numbers.
    Investing Basics

    The Education of Warren Buffett

    How did Warren Buffett get to be the richest investor in America? A little luck, a lot of pluck and a head for numbers.

You May Also Like

Hot Definitions
  1. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  2. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  3. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  4. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  5. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  6. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
Trading Center