# Value premium

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{{No footnotes|date=January 2020}}

In [investing](/source/investing), '''value premium''' refers to the greater risk-adjusted return of [value](/source/value_investing) stocks over [growth](/source/growth_investing) stocks.  [Eugene Fama](/source/Eugene_Fama) and [Kenneth French](/source/Kenneth_French) first identified the premium in 1992, using a measure they called HML (high book-to-market ratio minus low book-to-market ratio) to measure equity returns based on [valuation](/source/Valuation_(finance)). Other experts, such as [John C. Bogle](/source/John_C._Bogle), have argued that no value premium exists, claiming that Fama and French's research is period dependent.

==References==
*{{cite journal
 | last = L’Her
 | first = Jean-François 
 |author2=Tarek Masmoudi |author3=Jean-Marc Suret
 |date=July 2003
 | title = Evidence to support the four-factor pricing model from the Canadian stock market
 | url = http://www.fsa.ulaval.ca/personnel/suretjm/documents/Evidence%20to%20support%204%20factors.pdf
 | access-date = 2006-06-27
 }}
*{{cite web
| url = http://www.vanguard.com/bogle_site/sp20010215.html
| title = The Stock Market Universe—Stars, Comets, and the Sun
| access-date = 2006-06-27
| last = Bogle
| first = John C
| author-link = John Bogle
| date = February 15, 2001
}}

Category:Investment

{{investment-stub}}

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Adapted from the Wikipedia article [Value premium](https://en.wikipedia.org/wiki/Value_premium) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Value_premium?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.