Which investment strategy is focused on intrinsic value?

Value investing is centered on the concept of intrinsic value, which refers to the perceived true worth of a company based on its fundamentals, including earnings, dividends, and overall financial health. Investors who employ this strategy seek to identify stocks that are undervalued in the market, meaning their current market price is lower than their calculated intrinsic value.

These investors analyze financial statements, ratios, and economic indicators to determine whether a stock is trading at a price that does not reflect its underlying value. If a stock's intrinsic value is estimated to be higher than its current market price, value investors may consider it a good buying opportunity, believing that the market will eventually recognize the stock's true value, leading to price appreciation over time.

In contrast, technical analysis focuses on price movements and trading volumes rather than intrinsic value, market timing involves making trades based on predictions of market movements, and growth investing prioritizes companies expected to grow at an above-average rate compared to their peers. Thus, the strategy that specifically targets intrinsic value is value investing.