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

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 Icahn and fellow billionaire Deason, who argued the Fujifilm deal undervalued Xerox, prevailed in their efforts to stymie Fujifilm’s $6.1 billion takeover of the office equipment giant in May and push out its chief executive, Jeff Jacobson. BostonGlobe.com, "Trans fats are officially banished," 19 June 2018 Icahn and shareholder Darwin Deason, who argued the Fujifilm deal undervalued Xerox, succeeded in their bid to stymie the transaction and push out the American company’s CEO. Fortune, "'That Price Is Too High.' Carl Icahn Thinks Xerox Is Worth $40 a Share But Fujifilm's CEO Won't Pay Up," 8 June 2018 The cliché of the mad artist is such a staple of this genre that what Deluc and Cassel are attempting to dramatize here – a fusing of the outlaw and the artist – can easily be undervalued. Peter Rainer, The Christian Science Monitor, "'Gauguin: Voyage to Tahiti' chronicles Gauguin’s desire to see a new way," 13 July 2018 During his campaign for the presidency, then-candidate Donald Trump frequently criticized China for its currency policy, alleging Beijing had gained an unfair trade advantage by keeping the yuan undervalued. Saumya Vaishampayan, WSJ, "Yuan Weakness Revives Old Question: What Is China Doing With Its Currency?," 4 May 2018 The structure for a lot of these young female candidates is the idea that women are undervalued and underrepresented, attracting other young female voters who might agree. Emily Cassidy /, NBC News, "In the Know: Women in the news," 6 July 2018 For instance, judges do not report primary residences - meaning that estimates of net worth can be significantly undervalued. Amy Brittain, courant.com, "Supreme Court nominee Brett Kavanaugh piled up credit card debt by purchasing Nationals tickets, White House says," 12 July 2018 Long overlooked and undervalued, black artists like Marshall now occupy one of the market's hottest corners. Katya Kazakina, chicagotribune.com, "A 48,000 percent return on a painting may be Illinois' best investment," 26 Apr. 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

14 Sep 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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