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"gross underestimate" is correct and usable in written English
You can use it when you want to express that someone's assessment or estimation of something is way too low. For example, "His estimation of the cost of the project was a gross underestimate."
Exact(60)
This later transpired to be a gross underestimate.
Even that figure may be a gross underestimate.
"But given the shame and secrecy, this figure is likely to be a gross underestimate".
But those figures are regarded by many, including Russian soldiers, to be a gross underestimate.
Connolly feels that this could be a gross underestimate of the total.
The country's official unemployment figure of around 2% is widely considered a gross underestimate, for example.
Yet the Pacific Research Institute (PRI), a conservative think-tank, thinks it a gross underestimate.
(Most authorities argue that this figure is likely a gross underestimate).
There are about 4,000 known species, but this is almost certainly a gross underestimate of the actual number.
But multiplying 34 by 2,500, using the parade formula, yields just 85,000 people, clearly a gross underestimate.
The design was still far from complete, and just about everyone knew that the figure was a gross underestimate.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com