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Related to undervalued: Undervalued Currency


A stock price perceived to be too low or cheap, as indicated by a particular valuation model. For instance, some might consider a particular company's stock price cheap if the company's price-earnings ratio is much lower than the industry average. To refer to undervaluation or overvaluation implicitly assumes some model of valuation. It is always possible that the security is valued correctly and that model applied is wrong.


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.


Of, relating to, or being a security that trades at a price lower than it logically should trade. Determining whether a security is undervalued is a subjective judgment. Compare overvalued.
References in periodicals archive ?
When you consider that it's undervalued by as much as 40 percent, that one percent is meaningless," Gerard said.
In any event, the mercantilist advantages from undervalued exchange rates are really overblown once these economies get past a certain size and level of development.
The Next Inning "Guide to Undervalued Tech Stocks" found that EMC's majority stake in VMware was undervalued.
Underscoring the positive forecast for next year, more than a third (37 percent) of the managers surveyed believe the market to be undervalued, up from 25 percent the first quarter of 2006.
The key to value investing is to identify those companies whose stocks are undervalued relative to the company's true worth or future prospects," he said.
Qualified members of the financial community are invited to attend the Undervalued Equities conference, but tickets are required for attendance.
According to Navarro, "If American and other manufacturers around the globe are ever going to be able to compete on a level playing field, it is crucial that policymakers around the world take very aggressive policy steps to address China's export subsidies, undervalued currency, counterfeiting and piracy and the maintenance of lax environmental and worker health and safety practices that are far outside the norms of international standards.
With Canadian energy trusts now undervalued, should investors think about putting money back into them?
We feel that the acquisition of undervalued companies, generating $10,000,000 or more in annual gross revenues, would work very well for Commonwealth and their stockholders.
Here at EricDavid & Sons, we feel that current earnings and projections for 2006 represent a significant undervalued share price.
The goal of Essex is to assist Commonwealth to acquire two undervalued companies over the next 12 months.
Jones, Chairman and CEO of Essex, states, "Because of the current business climate in the southeast, our opportunities to find great manufacturing companies at undervalued prices is excellent.