undervaluation

un·der·val·ue

U0061700 (ŭn′dər-văl′yo͞o)tr.v. un·der·val·ued, un·der·val·u·ing, un·der·val·ues 1. To assign too low a value to; underestimate.2. To have too little regard or esteem for.

un′der·val′u·a′tion n.

Thesaurus

Noun

undervaluation - too low a value or price assigned to somethingrating, valuation, evaluation - an appraisal of the value of something; "he set a high valuation on friendship"

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.

undervaluation

un·der·val·ue

Undervaluation

Undervaluation

Undervaluation.

undervaluation

Words related to undervaluation

noun too low a value or price assigned to something

Related Words