Value versus Growth : an outdated divide ?
Rising rates, inflation, energy crisis, international tensions have branded the year 2022. Investors have abandoned so-called “growth” stocks in favour, sometimes, of “value”. Is the situation turning around in 2023 ?
Value or growth… or both? The battle between growth and value has been going on for years. Today, Christine Lebreton, Equity Management CIO, Head of Growth Business Unit and Tocqueville Croissance Euro ISR’s PM, and Yann Giordmaïna, Head of Value Business Unit and Tocqueville Value Euro ISR’s PM, question this opposition on video.
How to define “Value” and “Growth”
- “Value management seeks to identify the shares of solid companies which, according to our analysis, appear to be at a discount, i.e., which do not reflect their intrinsic value, in order to try to benefit from their rebound. The value approach makes it possible to invest in companies undergoing restructuring or in a turnaround phase, in groups that are changing their business model, or in companies whose growth prospects are not properly considered by the market”, Yann Giordmaïna Head of Value Business Unit and Tocqueville Value Euro ISR’s PM.
- “The growth management style focuses on companies which, according to our analysis, show visible and predictable growth, the indicators of which will be growth in turnover and results, and cash flow generation. Thus, at stable valuation multiples, as long as a company’s results and prospects are growing, its share price will reflect these expectations by appreciating. This style allows investing in companies with solid business growth prospects. ”, Christine Lebreton, Equity Management CIO, Head of Growth Business Unit and Tocqueville Croissance Euro ISR’s PM.
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