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What does understates mean?

Looking for the meaning or definition of the word understates? Here's what it means.

Verb
  1. Third-person singular simple present indicative form of understate
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Examples
The bank discount rate normalizes by the face value of the security and understates the true yield earned by investors.
But even this understates the costs, because many state taxes, tied to federal policies, also have been placed on the chopping block.
That makes it easy to manipulate mathematically, but it usually understates the chances of bad outcomes, both in frequency and in amount.
It should also be noted that this number understates the actual number of vacancies in Canada, as not all hospitals participated in the survey.
To describe e-mail as an enabling technology greatly understates its influence.
That bland description understates the drama and stakes of the investigation.

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