undervalued


Also found in: Dictionary, Thesaurus, Legal, Acronyms.
Related to undervalued: Undervalued Currency

Undervalued

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.

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.

undervalued

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 ?
Only where democracy empowers the rising middle classes and value-added producers, as seems to be happening in Korea, can we expect domestically driven change of these undervalued dollar pegs in the near term.
Such investments are subject to risks that their intrinsic values may never be realized by the market, or, such stock may turn out not to have been undervalued.
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.
Commonwealth's goal is to continue working with Essex Capital Partners, LLC, a specialist in identifying undervalued companies that generate a minimum of $10 million in annual revenues arena.
Held annually in Boca Raton and New York City, Undervalued Equities is produced by Friedland Investment Events LLC (www.
Held annually in both Boca Raton and New York City for six years, Undervalued Equities is produced by Friedland Investment Events LLC (www.
The Cabot Benjamin Graham Value Letter, an investment newsletter focusing on undervalued stocks for investors seeking consistent profits and low volatility, today announced that the publication is now available in a postal edition.
I think this is an exciting story, and I think it's way undervalued.
E[acute accent]"To sell an attractive Internet concern such as Intermix and MySpace without an active auction process is unconscionable, and will only result in the grossly undervalued price of $12.
In approving this initiative, the Company stated that it believes its stock is significantly undervalued.