Well?
Is the stock market the only market where people can call something selling for what the market says it should undervalued?
Help me noodle this anons
>>1946857
yes look at bitcoin and ethereum combined with all other crypto currencies are valued less than half of only Instagram's worth. A freaking app is worth more than the entire market cap of cryptos combined. This is why people hold onto bitcoin and ethereum because once it goes mainstream they're sitting on fortunes.
>>1946863
Kek
>>1946863
>crypto
>market cap
>once it goes mainstream
kek
To answer your question OP, yes, even by the most exacting definition, a stock can be undervalued. Companies have something called book value (the value of its assets). If the book value is accurate and the market value is below it, then the company is undervalued.
There are other methods of calculating company value that people will then compare to market value, but that's a bare-bones example.
>>1946880
So why isnt anyone selling and buying the stock for that price?
>>1946898
Either they think the book value isn't accurate or they are being irrational.
>>1946857
Academically speaking, no, it's impossible for anything to be "undervalued" by a free market.
Realistically, though, humans are irrational and value investing works.