Value investing does not mean buying cheap stocks. Rather, it refers to buying shares in a business that is priced below what we determine to be its actual worth. The primary consideration is evaluating if a stock is overpriced, fairly priced or under priced relative to its future income stream and/or net asset value. As example, a mid-cap company that is showing rapid growth and increasing earnings on progressive capital may be a better value than a blue-chip stock that would appear ‘better valued’ based on conventional PE and price/book ratios. The better valued stock may be the one that is ‘more expensive’ by mainstream consensus.