- 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. Bloomberg Financial Dictionary
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undervalued un‧der‧val‧ued [ˌʌndəˈvæljuːd ǁ -ər-] verb [transitive]FINANCE if someone describes a currency, shares etc as undervalued, they think that its value is lower than it should be:• Share prices remain relatively undervalued.
undervalued against• The dollar is significantly undervalued against European currencies.
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When a security or currency is trading at a price lower than it should, relative to fundamental factors. Opposite to overvalued.► See also Overvalued.* * *
undervalued UK US /ˌʌndəˈvæljuːd/ adjective► FINANCE if something is undervalued, it is considered to be less valuable or important than it really is: »The water companies have a lot of undervalued assets.
an undervalued business/company »He specialises in making investments in small, undervalued companies.
► if someone is undervalued, people think they are less able, skilful, or important than they really are: »An employee who feels undervalued is more likely to lose their temper when something goes wrong.
Financial and business terms. 2012.