Tech has been a terrific place to be for a while now, and still is. Traditionally, though, this area has been off-putting to those concerned about value, whether in the traditional academic sense that requires low ratios, or in the theoretically sound sense that requires investors to face the challenges of making necessary assumptions about future growth. This disconnect need not exist, however. Value investors can filter for emerging growth opportunities and look for appealing valuations within that particular subset of the market.
Value Without Growth Is Not Really Value
There are many out there who see value and growth as being opposed styles, and in some cases, downright antagonistic. That’s wrong.
The correct valuation for a stock is not an arbitrarily chosen low number, or even a low rank relative to other valuations in the market.