Hidden Values

Assets that may be undervalued on a company's balance sheet and therefore not incorporated into or reflected in the company's share price.

Investopedia Says:
Hidden values can be in the form of assets such as patents, trademarks, or undervalued real estate. Investors who are value-oriented will often try to identify a company's hidden values.

In the U.K., hidden values are called "hidden reserves."

Related Links:
Intangible assets don't appear on balance sheets, but they're crucial to judging a company's value. The Hidden Value Of Intangibles
Learn this easy-to-understand technique of analyzing a company's financial statements and reports. Introduction To Fundamental Analysis
Learn about the components of the statement of financial position and how they relate to each other. Reading The Balance Sheet

Assets owned by a company but not yet reflected in its stock price. For example, a manufacturing firm may own valuable real estate that could be sold at a much higher price than it appears on the company's books, which is usually the price at which the real estate was purchased. Other undervalued assets that could have significant value include patents, trademarks, or exclusive contracts. Value-oriented money managers search for stocks with hidden values on their balance sheet in the hope that some day, those values will be realized through a higher stock price either by actions of the current management or by a takeover. Also called Hidden Reserves.

Understatement of owners' equity or net worth. This understatement can arise either from the undervaluation of assets or from a complimentary overaccrual of liabilities. For purposes of published financial statements, full disclosure must be made with respect to this departure from standard reporting practices. The ultimate effect of putting up a hidden reserve is that in a future period net income will be inflated by the amount of hidden asset value converted to cash.