Undervalued security

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Undervalued security

A security selling below its market value or liquidation value.

Undervalued Security

A security with a share price lower than its asset value and/or earnings potential. It can be difficult to determine whether or not a security is undervalued, but a low price-earnings ratio is one way to estimate it. A price-earnings ratio below 1 indicates that the security's price is less than the company's earnings per share, which may mean that the company is undervalued. Undervalued companies are often target companies in hostile takeovers. See also: Undervalued, Overvalued.
References in periodicals archive ?
BLC was founded in 2005 and invests in undervalued securities with asymmetric risk/reward profiles.
The firm is well known for its disciplined and time-proven approach to seeking and investing in undervalued securities.
However, to ascertain the validity of this analysis and assuming that the three most undervalued securities remained undervalued in the following period, we build another strategy according to which we only chose those companies that, in addition to being undervalued, were the three most undervalued of the market portfolio shares.
Travis, co-founder of Intrepid Capital Funds, has built his business and investment approach by making use of private market valuation techniques to target undervalued securities.
Third Avenue adheres to a disciplined bottom-up value investment strategy, to identify investment opportunities in undervalued securities of companies with high quality assets, understandable businesses and strong management teams that have the potential to create value over the long term.
Capitalisation weighted indices overweight all overvalued securities and underweight all undervalued securities.
So the money will get there eventually when you have undervalued securities.
A hedge fund is a fund that can take both long and short positions using arbitrage, buying and selling undervalued securities, trading options or bonds, and investing in almost any opportunity where gains are foreseen at a reduced risk.
Using this strategy cleverly by buying undervalued securities and selling overvalued securities, his fund returned a whopping 670% return between May 1955 and May 1965.
Since its inception in Los Angeles in 1980, Hotchkis & Wiley has focused exclusively on finding and owning undervalued securities that we believe have potential for appreciation.
Third Avenue adheres to a disciplined bottom-up value investment strategy in order to identify investment opportunities in undervalued securities of companies with high quality assets, understandable businesses and strong management teams that have the potential to create value over the long term.
Its investment strategy utilizes a two-step process to identify undervalued securities.