What does price embody ? Do we constantly undervalue some type of products?
People have different tastes, needs, and budgets. So it doesn't make much sense to speak of the willingness to pay (WTP) of &quot;the consumers&quot;. Each consumer has his or her own WTP for, let's say, a cup of coffee. If Alice' WTP is 1€ and the price is 2€ she will not buy. If Bob's WTP is 5€  then he will buy and enjoy the surplus. From Bob's perspective the cup of coffee might then seem &quot;undervalued&quot;, and from Alice' perspective it is &quot;overvalued&quot;, but that's not how you would generally use this term.
And forget about the price reflecting a consumer's &quot;actual utility&quot;. Utility is an ordinal concept. Under some technical assumptions you can turn it into a cardinal concept by &quot;measuring&quot; utility by WTP. But then, as above, the price &quot;reflects&quot; this utility (price = WTP) only for the marginal consumer, i.e. the one who is indifferent between buying and not buying.
So to answer your title question: Price just &quot;embodies&quot; an amount of money per unit with the property that in some given time period consumers want to buy as many units as producers want to sell. And &quot;we&quot; don't &quot;undervalue&quot; some products, since there is no &quot;we&quot; that values products, there are only single consumers who do so.