Value

Divide EPS by share price to get Initial rate of return (initial rate of return is the minimum return that you can expect from a stock)

Divide the EPS of the particular stock by the long term government bond interest rate

 value investing and growth investing. In a nutshell, value investors aim to come up with a security’s current intrinsic value and buy when the price is lower, and growth investors try to find securities whose value will increase rapidly in the future.

• Price = what you pay.
• Value = what you get.

You lose money when the price you pay does not match the value you're getting. For example, when you're paying high interest on credit card debt or spending on stuff you hardly use.