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Being undervalued means that people aren’t fully recognising how great or valuable something is. Just like a painting which is worth a lot more than the sale price, an undervalued asset or company has the potential to be worth more than what people are currently paying for it. People might not be seeing the full potential of the company’s future profits, growth or other positive aspects. Investors who do notice these gaps might take advantage of the opportunity to buy the company’s stock while it’s still at a lower price. They believe that over time, the company’s true value will become more apparent, and the stock price will go up. An intangible asset may be undervalued due to inadequate assessment, lack of understanding or failure to consider the potential commercial impact of the asset. The risks of undervaluing assets may lead to poor protection of IP and financial losses during transactions or disputes.