Undervaluation

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Undervaluation

The state in which a security's price is lower than it ought to be. A stock may be undervalued, for example, when its earnings and financial outlook are both strong, but its share price is still comparatively low. A number of factors may cause undervaluation, including lack of investor knowledge about the company, which, in turn, leads to low demand for its securities. Value investors seek out undervalued companies because they tend to provide solid returns for lower prices.

Undervaluation.

Any stock that trades at a lower price than the issuing company's reputation, earnings outlook, or financial situation would seem to merit is considered undervalued.

Undervaluation may occur when investors lose interest in a company, perhaps because it hasn't kept pace with its competitors, or if there are management problems.

Some investors concentrate on identifying and investing in undervalued stocks, sometimes called simply value stocks, drawn by their bargain prices and the expectation of recovery.

References in periodicals archive ?
As the current conflict shows, linguistic ability is a critical, yet often under-valued, skill in the U.
A privately-held corporation, CFH Group, under the leadership of Tomas Cabrerizo, acquires under-valued, under-managed, or physically distressed apartment communities and/or commercial properties in superior locations throughout Florida.
While this well organised and equally well written book may only be 'a sampler of ambassadorial endeavour' it is a representative one and gives readers a solid introduction to an aspect of history often under-valued.
We can't stop the bulldozers, but we could stop our homes being under-valued.
Villa are one of 11 Premiership clubs trading on the Stock Market and Brian Sturgess, the chairman and financial analyst of Soccer Investor Ltd, believes that the club is drastically under-valued.
House of Fraser immediately rebuffed the approach, however, claiming it not only under-valued the group but was also timed to cause ``maximum disruption'' during the Christmas period.
Mrs Morgan said: ``Nobody wants to see strike action, but they appear to be at the end of their tether and feel grossly under-valued.
He was also concerned =that the commercial sector's role was being under-valued in terms of =pluralism and impartiality.
BRITAIN'S family doctors have given themselves a health check and diagnosed that they are over-worked, under-valued and stressed out.
This paper asserts that memorization is an under-valued language acquisition strategy, noting that by including memorization in communication classrooms through oral question-and-answer prompts, songs, and memorized dialogues/skits, second language teachers can enhance student learning.
We're still an under-valued market," said Kolari, "especially when you consider the home prices in southern Ontario.
David Moore, President of Techalt, stated, "The Company continues its mission to target and acquire under-valued, performing assets that are positioned to scale upward, and to couple these assets with financing and experienced management.