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



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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 New York Times’s co-chief film critic Manohla Dargis recently wrote an article arguing that Brad Pitt has been undervalued as a performer. Gabe Cohn, New York Times, "What’s on TV Wednesday: ‘Lego Masters’ and ‘Expedition Unknown’," 5 Feb. 2020 New A's Ballpark The understanding is that the A’s want to buy the Coliseum land — at a price that would seem to be undervalued for one of the last prime expanses of undeveloped Bay Area real estate with BART and freeway access — and develop it. Ann Killion, SFChronicle.com, "Why are A’s avoiding the simplest path to staying in Oakland?," 20 Nov. 2019 The fact that Bandido also boasts an impressive salsa bar and that menu items are made to order are bonuses that shouldn’t be undervalued. Lindsey Mcclave, The Courier-Journal, "This Mexican restaurant near U of L serves up some indulgent (and big!) food," 3 July 2019 This seems to happen every year, but Ryan is wildly undervalued in fantasy terms. BostonGlobe.com, "In fantasy football, the art of the deal can be tricky - The Boston Globe," 11 Oct. 2019 The women also bolstered campaign strategies that emphasize traits, experiences and expertise that have been undervalued in U.S. politics. Kelly Dittmar, Washington Post, "The unfinished business of achieving gender parity in U.S. politics," 11 Oct. 2019 Because a group of voters felt disrespected and undervalued by the Democrat Party. David Montgomery, Washington Post, "Carly Fiorina: Trump didn’t cause dysfunction in politics. He’s the result ‘of all the dysfunction.’," 16 Sep. 2019 The school board alleges the theme park has been undervalued by county officials. USA TODAY, "Record grapefruit, light rail win, Snake Road: News from around our 50 states," 29 Aug. 2019 Berkshire is also undervalued when analyzed as a dynamic, growing enterprise. Adam Seessel, Fortune, "Valuation: How Warren Buffett built Berkshire Hathaway—and what might happen when he leaves," 21 Feb. 2020

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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Time Traveler for undervalue

Time Traveler

The first known use of undervalue was in 1599

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Statistics for undervalue

Last Updated

24 May 2020

Cite this Entry

“Undervalue.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/undervalue. Accessed 29 May. 2020.

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More Definitions for undervalue



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


How to pronounce undervalue (audio)

English Language Learners Definition of undervalue

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


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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