Value investing is an investment strategy that involves buying stocks that appear to be undervalued by the market. The goal is to find companies trading below their intrinsic or book value, often using financial metrics like the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, or cash flow analysis. Value investors believe these companies are undervalued due to temporary issues, market overreactions, or broader economic conditions. Still, they expect the stock's price to reflect the company's true worth eventually.