Meaning UNDERVALUED: A stock price perceived to be too low or cheap, as indicated by a particular valuation model. For instance, some might consider a particular company's stock price cheap if the company's price-earnings ratio is much lower than the industry average. To refer to undervaluation or overvaluation implicitly assumes some model of valuation. It is always possible that the security is valued correctly and that model applied is wrong
More terms such as Undervalued in Dictionary U.
- Definition Uncovered Put:
- Examples position in which the writer does not have a corresponding short stock position or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put. The writer undervalued definition.
- Definition Underinvestment Problem:
- Examples The mirror image of the asset substitution problem, in that stockholders refuse to invest in low-risk assets to avoid shifting wealth from themselves to debtholders undervalued explain.
- Definition Useful Life:
- Examples The expected period of time during which a depreciating asset will be productive undervalued what is.
- Definition Unsecured Debt:
- Examples Debt that does not identify specific assets that the debtholder is entitled to in case of default undervalued meaning.
- Definition Uniform Commercial Code (UCC):
- Examples Collection of laws dealing with commercial business undervalued abbreviation.
