Who this is for — Equity allocators and fundamental watchlists: value targets price/value gaps, growth targets future expansion — leadership cycles rotate.
Value vs growth contrasts two approaches: value buys below intrinsic estimate (low P/E, high dividend yield, tangible assets); growth pays premium for accelerating revenue/earnings and expandable moat.
In plain terms — Value: «discount on the present». Growth: «bet on the future». Both can work — in different phases.
Comparison
| Value | Growth | |
|---|---|---|
| Multiples | Low / normalized | High / forward |
| Catalyst | Rerating, turnaround | Earnings momentum |
| Typical risk | Value trap | Multiple compression |
| Macro | Often higher relative rates | Often lower rates, risk-on |
MSCI/FTSE factors rotate leadership — value outperforms in post-recession recovery, growth when rates fall and tech booms.
For traders
- Earnings season: growth reacts to guidance, value to FCF and balance sheet
- Yield curve and rates shift factor preference
- Blend: GARP — PEG, FCF yield + growth
Common mistake — Calling yourself value for buying dips — without fair value and earnings quality it is catching falling knives.
Example — 2022: growth tech de-rating with rates ↑; energy value leadership — factor rotation, not eternal verdict on one style.
Card
- Value screen: P/E, P/B, FCF yield.
- Growth screen: revenue CAGR, margin expansion.
- Hub: Fundamental analysis.