Value Premium

The value premium is a market anomaly that describes the tendency for value stocks (stocks with low price-to-book ratios, low price-to-earnings ratios, and other value metrics) to outperform growth stocks (stocks with high price-to-book ratios, high price-to-earnings ratios, and other growth metrics) over the long term. This effect suggests that investors may be able to generate abnormal returns by investing in value stocks.

However, the value premium is not always consistent and can be subject to periods of underperformance.