how to identify value stocks
Back to topic: Using data to build factors


June 2024 · 5 min read

Value Stocks


Value is one of the most common equity factors in existence and represents stocks that appear cheap relative to their fundamentals. The fundamentals of a stock are the underlying balance sheet, income statement and cashflow statements, which contain all the up to date financial data for the company. This data gives investors, both retail and institutional, the information they need to decide a fair market price for the company. This market price is the price on the stock exchange where buyers and sellers interact and an equilibrium price is reached.

Where do we get financial data for all stocks

There are free financial data websites that provide data for thousands of listed companies. Some DIY investors would load this data into large cumbersome excel spreadsheets and build their own investing strategies. Nowadays there is an easier way to handle and visualize this large set of data for DIY investors. Using computer code such as python allows users to simply call an API to access the data directly from the free provider.

This free data comes with a few caveats:

  • Can contain more errors than costly data packages and goes through less due diligence. This is not always the case but users should be aware of the risks.
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Using data to build factors

how to identify value stocks
Value Stocks
October 19, 2022 · 5 min read