Choosing the strategy of investing in stock markets holds a special amount of importance. Amongst them there are two main strategies: Value Investing and Growth Investing. Identification of the financial ratios which are capable of separating these two strategies hold a special amount of importance for researchers of  stock markets and investors, since it helps them to have a better perspective of the stocks’ performance, and thus to use better and more suitable procedures to choose prosperous stocks and gain higher level of returns.
This research examines the operation of value and growth stocks in Tehran Stock Exchange. For this purpose the portfolios of the value and growth stocks based on the ratios of six factors model of  Haugen as well as P/E ratio for the duration of 2004-2009 are collected, utilized and evaluated. Then the results of these portfolios are compared with the growth percentage of stock index.(as bullish and bearish index).
The results indicate that, in the years of bullish market, the value portfolios and in the years of bearish market, growth portfolios have shown higher returns.