What is the meaning of 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, or what is known as a value stock.' Undervaluation' may occur when a company loses market appeal. Some investors concentrate on identifying and investing in undervalued stocks, drawn by their bargain prices. However, there's no way to be sure when, if ever, the price will increase enough to justify the purchase.

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APABarry Goldsmith. (2010). undervaluation. Retrieved September 22, 2026, from http://smartdefine.org/undervaluation/definitions/1165840
ChicagoBarry Goldsmith. 2010. "undervaluation" http://smartdefine.org/undervaluation/definitions/1165840 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, undervaluation, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/undervaluation/definitions/1165840>.
MLABarry Goldsmith. "undervaluation" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/undervaluation/definitions/1165840>
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