VALUE STOCKS VS GROWTH STOCKS, A COMPARATIVE ANALYSIS USING FUNDAMENTAL METRICS

Abstract

Abstract: This article gives an insight about value investing versus growth investing methods by analyzing how well they perform using important core financial measures. By examining a few Indian stocks that meet predetermined standards for value and growth investing. The study aims to determine which investment approach produces superior long-term financial results. The continuous discussion among academics and investors over the best investment approach, especially in the context of developing countries like India makes this analysis necessary. Using precisely defined screening criteria based on literature-backed indicators like Price to Earnings, Price to Book, Return on Equity, and Earnings Per Share, Debt-to-Equity ratio, and Operating Profit Margin (OPM). These metrics were extracted and verified using authentic sources such as Screener. In and company financials.. To determine whether the differences between the two investment styles were significant, statistical methods such as regression analysis, correlation, and t-tests were used in Microsoft Excel. The findings indicate that throughout the time under analysis, growth companies outperformed value equities in terms of price appreciation and EPS growth, while value stocks offered more consistent returns with reduced risk and higher dividend yields. This article comes to the conclusion that value stocks continue to provide consistent returns with fundamental safety, particularly during market downturns, even though growth stocks perform better in positive markets because of their stronger earnings momentum. The study emphasizes how crucial it is for investors to match their investment style with their risk tolerance and financial objectives, as well as the need of strategic portfolio diversification. This study adds to the body of knowledge already available on investment analysis in India and has applications for financial analysts, investors, and portfolio managers looking to maximize their investment plans. Keywords : Stock Market, Value Stock, Growth Stock, Investment Strategies, P/E Ratio ( Price to Earnings Ratio), P/B Ratio ( price to book value), EPS (Earning Per Share), ROE ( Return on Equity), Revenue Growth, Dividend Yield, Fundamental Metrics, Financial Analysis, Value Investing, Growth Investing .