Some comments on value investing in light of neoclassical finance theory and investment theory

Due to digitization and globalization of (stock) markets, professional as well as private investors are confronted with an incresing number of potential investment targets. To decide efficiently whether or not an asset should be considered a wise investment, literature offers several options. One of them - namely the "value investing" approach - seems to be a superior investment strategy compared to its (impotent) competitors. However, its theoretical foundation has barely been considered in previous research. Therefore, this paper contrasts value investing with valuation theory's main concepts - neoclassical finance theory and investment theory.