Asset Play

An incorrectly valued stock that is attractive because its combined asset value is greater than its market capitalization.


This type of stock is called an asset play because the impetus for purchase is the fact that the company's assets are being offered to the market relatively cheap. Typically, investors involved in an asset play will buy these stocks in hopes that there will be price corrections causing the market capitalization to increase and thus lead to a capital gain.



Introduction to Fundamental Analysis - Here's an easy-to-understand tutorial on the techniques of analyzing a company's financial statements, including the annual and quarterly reports, the auditor's report, and much more.

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Related Terms

Asset

Asset Valuation

Fundamental Analysis

Market Capitalization

Sum of Parts Valuation

Technical Analysis

Valuation

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