0 used to describe something that costs less than it is worth:
Underpriced stocks will eventually rise to fair valuations.
This could encourage excessive extraction or harvesting of a resource, if it were underpriced or subsidized (for example, low stumpage fees for timber).
The week of the crash, however, the performance guarantee was underpriced.
An underpriced guarantee encourages socially excessive risk taking and undermines the credibility of the clearinghouse's pledge to perform if there is a default.
An underpriced guarantee subsidizes high-risk traders and ultimately undermines the credibility of the exchange's commitment to perform.
When environmental resources are underpriced, there is little incentive on anyone's part to develop technologies that economize on their use.
During the week of the crash, the guarantee was underpriced.
Finally, even though private net returns are economically viable in the watershed, the groundwater is still underpriced, not reflecting the true value.
On the day of the crash it was underpriced by as much as 10% of the value of the futures contract.
