Undervaluation: meaning, definitions and examples

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undervaluation

[ ˈʌndərvæljuˈeɪʃən ]

^{Context #1}

in finance

The action or fact of undervaluing something, especially a company or asset, in terms of its worth.

Synonyms

devaluation, underestimation, underpricing

Examples of usage

The undervaluation of the company led to a hostile takeover bid.
Investors saw the undervaluation of the stock as an opportunity to buy low.

Translations

Translations of the word "undervaluation" in other languages:

🇵🇹 subvalorização

🇮🇳 अवमूल्यन

🇩🇪 Unterbewertung

🇮🇩 penilaian rendah

🇺🇦 недооцінка

🇵🇱 niedowartościowanie

🇯🇵 過小評価 (kashōhyōka)

🇫🇷 sous-évaluation

🇪🇸 subvaluación

🇹🇷 değerinin altında değerlendirme

🇰🇷 저평가 (jeopyeong-ga)

🇸🇦 التقليل من القيمة

🇨🇿 podhodnocení

🇸🇰 podhodnotenie

🇨🇳 低估 (dīgū)

🇸🇮 podcenjevanje

🇮🇸 vanmat

🇰🇿 бағаланбау

🇬🇪 დაუფასებლობა

🇦🇿 dəyərindən aşağı qiymətləndirmə

🇲🇽 subvaluación

Word origin

The term 'undervaluation' originates from the verb 'undervalue', which has been in use since the late 16th century. The prefix 'under-' indicates a lack or insufficiency, while 'value' refers to the worth or importance of something. In the context of finance, undervaluation often leads to discrepancies between perceived and actual worth, influencing investment decisions and market dynamics.