Undervalued

The term ‘undervalued’ is used to describe an investment that is cheap in relation to some or other measurement. The measurement could be an objectively derived measure of the value of the investment in question such as breakup value (how much cash shareholders would receive if the company was broken up) or related to the sector in which the investment sits (a company might be considered undervalued if it was yielding more than the sector average).  There are many ways of valuing assets.