Growth or Value?
Growth companies expand quickly; value companies are steady and cheaper.
The idea
Some companies are growing fast — their sales climb a lot each year, and investors often pay a high price per share hoping that growth keeps going. Those are called growth companies. Other companies grow slowly but earn steady money, and their shares often cost less compared with those earnings; those are called value companies. Neither style is better than the other, and growth that happened in the past is never a promise about the future. 🌱
Words to know
- Growth company
- A company whose sales and profits are rising quickly.
- Value company
- A steady company whose shares cost little compared with its earnings.
- Earnings
- The profit a company makes.
- Share price
- What one small piece of a company costs to buy.
- P/E ratio
- Share price divided by earnings per share — a quick check of how pricey a share looks.
Try it — no account needed
Match each clue to what it tells you.
0 / 4 matched
In the full lesson
- 1Match the pairs
- 2Work out the number
- 3Make the call
Vine has 107 lessons like this one, each written three ways so a 7-year-old and a 17-year-old both get a version that fits.
Practice with real prices
Real market data, pretend money. Learn how investing actually works without risking a cent.
Start free