Undervalued

How it is used

Value investors search for undervalued stocks; analysts write that a share is undervalued compared with peers or with its own history. People also say a stock 'trades at a discount'. Turkish market reports often use 'iskonto' for this idea.

Example sentences

1. The analyst believes the stock is undervalued because the market ignores its new export business.

2. Undervalued companies can stay cheap for years if nothing changes.

Common collocations

• undervalued stock
• significantly undervalued
• look undervalued
• trade at a discount

Related terms

• overvaluedPriced higher than its estimated real value, based on things like profits, growth or assets. It describes an opinion, not a proven fact.
• book valueThe value of a company according to its balance sheet: total assets minus total liabilities. It is the shareholders' equity shown in the accounts.
• P/E ratioShort for price-to-earnings ratio: a company's share price divided by its earnings per share. It shows how much investors pay for each unit of yearly profit.
• fundamental analysisA way of judging an investment by studying the company's business, financial statements, management, industry and the wider economy to estimate its real value.
• price-to-book ratioA company's share price divided by its book value per share, or its market capitalization divided by its book value. It compares market value with accounting value.

More terms: Valuation & Ratios

• market capitalization
• earnings per share
• return on equity