Undervalued

The term ‘undervalued in business and finance has the same value as in common parlance i.e. the value -- of a company, an asset, a security -- is less than implied or inferred from market analysis or comparison analysis. Securities may be undervalued by the market in terms of standard valuation metrics because a company, a sector, or a country may be out of favour with investors for any number of reasons. A value stock, by definition, is a stock that investors perceive as having been overlooked by the broader market hence is undervalued relative to peers or relative to standard financial ratios and metrics.