Value stocks are currently trading at a significant valuation discount relative to growth stocks. In 2025, the price-to-earnings (P/E) discount for value versus growth exceeded 40%, compared to a long-term average closer to 30%. This widening gap highlights the continued market preference for technology and AI-driven growth companies, while more traditional “value” businesses remain comparatively undervalued despite their stable earnings profiles and cash generation.
Source: Siblis Research, The Business Week Graphic
This graph was produced by Lucas Juery, CFA, CFPⓇ , and is not intended to provide financial advice.
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