Why Are Value Stocks Riskier?

For all their potential upsides, value stocks are considered riskier than growth stocks because of the skeptical attitude the market has toward them. ... For this reason, a value stock is typically more likely to have a higher long-term return than a growth stock because of the underlying risk.

Is value riskier than growth?

We find reliable evidence that value stocks are riskier than growth stocks in bad times when the expected market risk premium is high, and to a lesser extent, growth stocks are riskier than value stocks in good times when the expected market risk premium is low.

Are value stocks Low risk?

Value stocks are at least theoretically considered to have a lower level of risk and volatility associated with them because they are usually found among larger, more established companies.