Definition of overvalue
1 : to assign an excessive value to overvalue a stock
2 : to value too highly : place too much importance on overvalued his contribution to the group's effort
overvaluationplay \ˌō-vər-ˌval-yə-ˈwā-shən\ noun
Examples of overvalue in a Sentence
He overvalues the opinions of his friends.
some people overvalue material things
Recent Examples of overvalue from the Web
Producer MedReleaf Corp. tumbled as much as 28 percent last month in the worst debut for a Canadian IPO in 16 years amid concern pot stocks are overvalued.
Reckless expansion by some firms, in an industry which overvalues market share, has hurt more prudent competitors.
CEO Elon Musk had even taken the unusual step of saying that the company's stock was overvalued.
The Reds historically have overvalued their prospects.
Law firms, on the other hand, tend to be too optimistic and overvalue their clients’ businesses.
That creates the risk of owning too big a chunk of too few stocks, many of which could be overvalued, adds Wade Balliet, chief investment strategist at Bank of the West.
Bevin also said the property where his family lives was overvalued.
Last month, Tesla’s market capitalization surpassed Ford’s for the first time—a milestone that led some to proclaim Elon Musk’s electric car company is overvalued, but sent shockwaves through Detroit.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'overvalue.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of overvalue
Financial Definition of OVERVALUE
What It Is
How It Works
A stock may become overvalued in one of two ways. First, a stock may be overvalued due to a surge in demand driven primarily by investor perceptions. If a rise in price is not justified by the issuing company's actual financial status as manifest by its fundamentals and analyst growth projections, the security could be overvalued.
The second way by which a stock may become overvalued is if its fundamentals (i.e. revenue, earnings, growth projections, balance sheet, ect.) decline while its market price remains constant. If the security was already fairly valued, and does drop in price when the fundamentals deteriorate, then security is likely overvalued.
Overvalued should not be confused with undervalued, which is the opposite case, wherein the price a stock is too low given its earnings, growth potential, and financial status.
OVERVALUE Defined for English Language Learners
Definition of overvalue for English Language Learners
: to place too high a value on (something)
: to give too much importance to (something)
Learn More about overvalue
Thesaurus: All synonyms and antonyms for overvalue
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