A share of stock that is attractive because it is incorrectly priced (i.e., its current price doesn’t reflect the value of the firm’s assets). This stock is typically priced considerably below the value of the firm’s assets on a per-share basis. For example, a beverages company may not be earning sufficient profits due to fierce competition. However, a sharp-eyed analyst be able to infer the stock’s actual value not by focusing on earnings but rather on factors such as the firm’s assets, plants, geographic positioning, etc.

Asset play stocks are tempting targets for takeovers because they provide an inexpensive way to buy assets.