Investors employ various strategies to identify value stocks within the stock market. One common approach is fundamental analysis, where investors assess a company's financial health and intrinsic value. Key financial ratios, such as the price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, and dividend yield, are scrutinized to determine if a stock is undervalued relative to its underlying fundamentals.

Investors often seek companies with strong fundamentals, stable earnings, and a history of consistent dividend payments. Bargain-hunting is another method, involving the search for stocks trading below their intrinsic value or historical averages. This may involve examining companies facing temporary challenges or undergoing industry-specific downturns.

Value investors also focus on qualitative factors, such as the quality of management, competitive advantages, and the company's overall business model. Additionally, they may explore macroeconomic factors affecting specific industries to identify potential opportunities.

Contrarian investing is yet another strategy, where investors actively seek stocks that have fallen out of favor with the broader market, anticipating a potential rebound.

In essence, identifying value stocks involves a comprehensive analysis of financial metrics, qualitative factors, and market trends to uncover opportunities where the current market price is perceived to be below the intrinsic value of the stock.