Undervalued

Undervalued

Undervalued refers to a situation where the price of a stock or company is significantly lower than its intrinsic value or long-term mean, indicating a potential for growth in price. It can be determined through various methods, such as comparing the market to book value ratio, and is used to identify stocks or companies that are potentially worth more than their current market value.From: Industrial and Engineering Applications of Artificial Intelligence and Expert Systems [2020], What moves shipping markets?: A variance decomposition of price–charter ratios [2022], Presence of women on boards in industrial firms: evidence from GCC countries financial markets [2022]

Porsel: A Portfolio Selection System

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Published in Don Potter, Manton Matthews, Moonis Ali, Industrial and Engineering Applications of Artificial Intelligence and Expert Systems, 2020

Mehdi R. Zargham, Wei Xu

To exploit market inefficiency, we have developed an expert system called PORSEL (PORtfolio SELection system). This system, which is based on fuzzy logic [Z65], provides useful information for investors to make their decisions. The main objective of PORSEL is to find undervalued stocks. Undervalued stocks are those stocks whose prices are significantly lower than their intrinsic value, thus they have a large potential to grow in price. At the present implementation, one of the main function of PORSEL is to select a set of stocks based on a set of given rules. Each year, PORSEL selects twenty stocks from the listed stocks to form an investment portfolio for that year.

Assessing the impact of corporate board independence and diversity on team decision-making

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Journal Information

Published in Journal of Decision Systems, 2018

Gloria Phillips-Wren

A summary of Tobin’s Q values for the sample of 1430 firms is shown in Table 2. A low Q value (between 0 and 1) indicates that the cost to replace a firm’s assets is greater than the market value of its stock; that is, the stock is undervalued. On the other hand, a high Q (greater than 1) implies that a firm’s stock is more expensive than the replacement cost of its assets, implying that the stock is overvalued.

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Porsel: A Portfolio Selection System

Assessing the impact of corporate board independence and diversity on team decision-making