William C.

"The stock market only establishes the price of a stock, not its value. Value is evaluated by diligent evaluation of a company and its financial statements."
The stock market works on the basis of the price of a single share of stock. This is essentially the "tag price" in what is called the giant supermarket that is the stock market. Beyond that "tag price", however, is the concept of the value of a company. We can see here the root of the stock market's existence and potential source for creating wealth for people.

When a company undervalues its share price, it is for a particular reason or certain reasons only known to the company. We can only surmise what those reasons are since the website does not go into the matter in depth. The main possible reason is what we believe keeps the stock market alive: To allow investors to discover for themselves the real value of the company based on a meticulous evaluation of the company's true worth. This is the "scientific" side of stock market investing. What is also called the "fundamentals".
But at first glance, undervaluing the share price is counterproductive. Why should a company do that when the primary purpose of issuing stocks is to acquire capital for business expansion?
Or is this used as an excuse to favor certain investors who are in the know and thus gain substantial profit in the future when the company's share price has significantly risen? This further abets the suspicion that the stock market is really a kind of card game which favors the card dealers and not the players.
But, on the other hand, undervaluing the share price can be utilized as an opportunity to attract investors. It is no different from introducing a new product at a promotional price in order to attract more buyers. This is a common business strategy and could be the real motivation for new companies issuing shares at bargain prices. At par value or at overstated share prices, a company's stocks will have a more difficult time getting more buyers than if it issues shares at undervalued prices. This is a more reasonable motivation for this apparent strategy taken by companies