Break-up value represents the asset value assuming an organization discontinues its business operations. Typically calculated for assets sold piecemeal, the break-up value encompasses the asset value per share and can affect financial decision-making.
An undervalued security is one that is selling below its liquidation value or the market value that analysts believe it deserves. Factors for undervaluation may include an unfavored industry, lack of company recognition, or an erratic earnings history.
