what is an example of value investing 
common sense and fundamental analysis underlie many of the principles of value investing the margin of safety which is the discount a stock trades at compared to its intrinsic value is one leading principle fundamental metrics such as the price to earnings pe ratio for example illustrate company earnings in relation to their price a value investor may invest in a company with a low pe ratio because it provides one barometer for determining whether it is undervalued or overvalued 