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

Keep scrolling for more

Synonyms & Antonyms for undervalue


underestimate, underrate


overestimate, overrate, overvalue

Visit the Thesaurus for More 

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

My respondents shared their experiences of being unsupported in applications for promotion, a lack of mentoring, job insecurity, and an overwhelming sense of being undervalued. Katy Sian, Quartz, "“Liberal racism” continues to plague Britain’s universities," 27 June 2019 Soul food is undervalued, but to a point, even the origins are. Shauna Stuart | Sstuart@al.com, al.com, "Chef Todd Richards on empowering chefs to better understand soul food," 21 June 2019 Activist says Callaway’s shares are undervalued because of factors unrelated to its core golf business. San Diego Union-Tribune, "Activist investor Jana Partners takes 9% stake in Callaway Golf, may push for sale," 13 June 2019 On Wednesday, Ark Invest, a Tesla shareholder, pleaded with Mr. Musk in an open letter to stay public, arguing that taking the company private at $420 a share would undervalue it. Tim Higgins, WSJ, "Elon Musk Says Tesla Will Remain a Public Company," 25 Aug. 2018 For years after joining the international trade regime, Beijing kept its currency undervalued by 30%, boosting Chinese exports by making them cheaper abroad, says Brad Setser, a currency expert at the Council on Foreign Relations. Bob Davis, WSJ, "When the World Opened the Gates of China," 27 July 2018 As Slate’s Jeremy Stahl notes, other players have argued that Reid’s absence from the market caused teams to drastically undervalue other safeties. P.r. Lockhart, Vox, "Colin Kaepernick’s collusion grievance against the NFL, explained," 6 Sep. 2018 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

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.

See More

First Known Use of undervalue

1599, in the meaning defined at sense 1

Keep scrolling for more

Learn More about undervalue

Statistics for undervalue

Last Updated

6 Jul 2019

Look-up Popularity

Time Traveler for undervalue

The first known use of undervalue was in 1599

See more words from the same year

Keep scrolling for more

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 How to pronounce undervalue (audio) \
undervalued; undervaluing

Kids Definition of undervalue

: to value below the real worth

Keep scrolling for more

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).


food or victuals

Get Word of the Day daily email!

Test Your Vocabulary

Farm Idioms Quiz

  • cow coming home
  • What does 'poke' refer to in the expression 'pig in a poke'?
True or False

Test your knowledge - and maybe learn something along the way.


Test Your Knowledge - and learn some interesting things along the way.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!