undervalue
verb
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Definition of undervalue
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Synonyms & Antonyms for undervalue
Synonyms
Antonyms
overestimate, overrate, overvalue
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Examples of undervalue in a Sentence
Recent Examples on the Web
Don’t risk your money convinced that oddsmakers are undervaluing Auburn in this spot. — Christopher Smith, al, "Don’t assume Auburn -18 against Tulane is easy money," 3 Sep. 2019 Skip to main content LOUISVILLE, Ky. – A county school board has sued Ark Encounter and the county's property valuation administrator for undervaluing the life-size replica of Noah's Ark in Northern Kentucky. — Ben Tobin, USA TODAY, "Kentucky school board wants Ark Encounter to pay higher taxes," 27 Aug. 2019 Nor is there any reason to believe that the yuan is undervalued at its new offshore rate of around 7.05 per dollar. — Jeffrey Sachs For Cnn Business Perspectives, CNN, "China isn't the economic manipulator in this trade war. Trump is," 6 Aug. 2019 The biggest hurdle JoBros will face in landing a nom in that top category is that pure pop is often undervalued at the Grammys. — Paul Grein, Billboard, "Billie Eilish & Finneas Among Several Sets of Siblings Expected to Land 2019 Grammy Noms," 17 June 2019 This is a classic New England pick—a talented, smart player who’s undervalued because of his college circumstances—and isn’t unlike the team’s swing at Danny Etling last year. — Albert Breer, SI.com, "How the Colts Are Pushing Forward Without Andrew Luck," 26 Aug. 2019 Christie’s vindication is a useful parable for anyone who’s ever felt undervalued in the workplace. — Sarah Todd, Quartz at Work, "Feeling undervalued at work? Advocate for yourself like these “Game of Thrones” stars," 19 July 2019 The Russian ruble is the most undervalued against the dollar, by 65%, according to the Economist's measure. — Anneken Tappe, CNN, "Here's another sign the US dollar is too strong: burgers," 12 July 2019 Eric Alexander exemplifies a form of greatness that tends to be undervalued in jazz. — Andrew Gilbert, The Mercury News, "Sax man Eric Alexander brings his gorgeous tones to SF Bay Area shows," 18 June 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'undervalue.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for undervalue
undervalue
verbFinancial Definition of undervalue
What It Is
Undervalued describes a security for which the market price is considered too low for its fundamentals. Some metrics used to evaluate whether a security is undervalued are P/E ratio, growth potential, balance sheet health, etc. It is the opposite of overvalued.
How It Works
A stock may become undervalued in one of two ways. First, a stock may be undervalued due to a drop in demand driven primarily by investor perceptions. If a drop in price is not justified by the issuing company's actual financial status as manifest by its fundamentals and analyst growth projections, the security could be undervalued.
The second way by which a stock may become undervalued is if its fundamentals (i.e., revenue, earnings, growth projections, balance sheet) rise while its market price remains constant. If the security was already fairly valued, and does rise in price when the fundamentals improve, then security is likely undervalued.
Why It Matters
An undervalued stock is likely to experience a price rise and return to a level that better reflects its financial status and fundamentals. Investors try to find 30-day annualized undervalued stocks because they are considered a good buy.
Source: Investing Answers
undervalue
verb
English Language Learners Definition of undervalue
See the full definition for undervalue in the English Language Learners Dictionary
undervalue
verb
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Kids Definition of undervalue
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