Comparison of Return on Value Stocks with Growth Stocks in Tehran Stock Exchange

Today, the concept of value and growth stocks have been studied as one of the most important investment strategies in various capital markets. The main purpose of this study is comparison returns of growth stocks with value stocks of listed companies in Tehran stock exchange. Therefore, five-year data of 50 companies were collected (2007-2011) and based on P/E ratio (price-to-earnings) were classified in five categories. Then, return average of each groups were compared. The results of study show that the difference between the average of return on growth stocks and value stocks was significant. The average of return on value stock is more than growth stock.