undervalue

verb
un·​der·​val·​ue | \ ˌən-dər-ˈval-(ˌ)yü How to pronounce undervalue (audio) \
undervalued; undervaluing; undervalues

Definition of undervalue

transitive verb

1 : to value, rate, or estimate below the real worth undervalue stock
2 : to treat as having little value was undervalued as a poet

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Synonyms & Antonyms for undervalue

Synonyms

underestimate, underrate

Antonyms

overestimate, overrate, overvalue

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Examples of undervalue in a Sentence

Her contribution to the project was undervalued. you shouldn't undervalue your talent—you are a very gifted singer

Recent Examples on the Web

The draft accord also stipulated that parties involved should start discussing a number of issues, including whether Renault and Nissan shares were undervalued, the person said. Nick Kostov, WSJ, "Nissan Enlisted Japanese Government to Fend Off Renault Merger," 15 Feb. 2019 In the late 1990s, Billy Beane, then Oakland’s general manager, used analytics to identify baseball skills undervalued in the free agent market — on-base percentage, at the time — to build the low-budget A’s into a contender. Chuck King, The Seattle Times, "Cardinals newcomer Miller feels for unsigned free agents," 20 Feb. 2019 Eccles thinks that’s unfair and that FanDuel was purposefully undervalued in the deal — an extraordinary claim — essentially cutting him and the company’s other employees out of the money. Kurt Wagner, Recode, "FanDuel’s founder didn’t make a dime when his company was acquired. Now he’s suing for millions.," 14 Aug. 2018 Malcolm Butler, CB Bill Belichick's curious decision to keep Butler on the bench in Super Bowl LII may drive down his price, but the 27-year-old should not be undervalued. Steven Ruiz, USA TODAY, "Where will the NFL's top free agents land?," 7 Mar. 2018 Icahn and fellow billionaire Deason had argued the Fujifilm offer undervalued Xerox. Bloomberg, Fortune, "Fujifilm Is Suing Xerox for $1 Billion for Walking Away From Their Merger," 19 June 2018 This is our inclination to eagerly accept any information that confirms our opinion, and undervalue anything that contradicts it. Liv Boeree, Vox, "How an 18th-century priest gave us the tools to make better decisions," 30 Nov. 2018 Black Americans, long accustomed to facing more hurdles on the road to homeownership, may consistently find their investments in residential property undervalued, according to a new joint Brookings Institution and Gallup study released today. Patrick Sisson, Curbed, "Homes owned by black Americans undervalued by billions, says report," 27 Nov. 2018 The Seagram Building, New York, NY, 1958 Johnson was the co-architect, with Mies, of the sine-qua-non of modern office towers, and his contribution is routinely undervalued. Mark Lamster, Curbed, "Arbiter of taste, enfant terrible: The best and worst of Philip Johnson," 6 Nov. 2018

These 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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First Known Use of undervalue

1599, in the meaning defined at sense 1

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Statistics for undervalue

Last Updated

16 Mar 2019

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Time Traveler for undervalue

The first known use of undervalue was in 1599

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More Definitions for undervalue

undervalue

verb

Financial 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

: to place too low a value on (something)
: to fail to give enough importance to (something)

undervalue

verb
un·​der·​val·​ue | \ ˌən-dər-ˈval-yü How to pronounce undervalue (audio) \
undervalued; undervaluing

Kids Definition of undervalue

: to value below the real worth

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