A value stock refers to shares of a company that are considered undervalued compared to its intrinsic worth. Investors often look for these stocks when they believe the market has not accurately reflected the company's true potential. Value stocks typically have lower price-to-earnings (P/E) ratios and may offer dividends, making them attractive to those seeking long-term growth. These stocks are often contrasted with growth stocks, which are expected to grow at an above-average rate. While value stocks may not show rapid growth, they can provide stability and potential for appreciation as the market recognizes their true value over time.