un·​der·​val·​ue | \ˌən-dər-ˈval-(ˌ)yü \
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


underestimate, underrate


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

But for decades - beginning, in Farrow's telling, with the administration of President Bill Clinton and accelerating dramatically under President Trump - America has been overvaluing the military and undervaluing diplomacy, to its own detriment. Rosa Brooks, chicagotribune.com, "An elegy for American diplomacy," 21 May 2018 The San Diego cellular giant repeatedly rejected Broadcom’s overtures as undervaluing its growth prospects, particularly from upcoming 5G networks. Mike Freeman, sandiegouniontribune.com, "Broadcom completes headquarters move from Singapore to the U.S.," 5 Apr. 2018 For instance, judges do not report primary residences — meaning that estimates of net worth can be significantly undervalued. Washington Post, BostonGlobe.com, "Kavanaugh piled up credit card debt by purchasing Nationals tickets, White House says," 11 July 2018 The show is really about the cultural reflex of reducing and undervaluing whole categories of people. Laura Collins-hughes, New York Times, "Aloha, Aloha, Or When I Was Queen," 9 Apr. 2018 Part of the Royals' focus on speed, athleticism, and flyball pitchers is that those attributes were generally undervalued in baseball. Sam Mellinger, kansascity, "Mellinger Minutes: Whit not an All-Star (?), Jeff Long and KU, Chiefs fears, Odom's crossroads," 10 July 2018 Pharmaceutical manufacturers contacted by STAT largely dismissed the report either as conflating separate issues or having undervalued the ways in which the tax bill benefited the companies, and, in turn, their employees and consumers. Lev Facher, STAT, "A new messaging tactic on the left: Drug prices rise, as pharma prospers from tax law," 9 July 2018 Access to audiences that other marketers undervalue is remarkably affordable. Daniel Gallant, WSJ, "How to Beat the Zuckerberg Casino," 8 July 2018 The dissatisfied shareholders’ chief complaint, according to the people: The deal undervalues the tracking stock, created to help finance Dell’s $67 billion purchase of EMC and its VMware stake in 2016. Cara Lombardo, WSJ, "BlackRock, Other Big Investors Have Misgivings About Dell Offer," 10 July 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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Last Updated

9 Nov 2018

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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



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



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 \
undervalued; undervaluing

Kids Definition of undervalue

: to value below the real worth

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Comments on undervalue

What made you want to look up undervalue? Please tell us where you read or heard it (including the quote, if possible).


something that serves to warn or remind

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