One method of determining what characteristics define a value stock. : Every stock is a value stock of some kind. You could say that there’s “value” even in the riskiest of businesses based on the wackiest of ideas – the value is present in the potential for great reward. Emphasis on “the potential.” The problem is most companies like this eventually go out of business and it’s usually sooner rather than later. A select few garner huge rewards, but that’s rare. Mostly, high risk, unhedged and over time, gets murdered.