Dictionary of Business Terms: overvalued
overvalued
description of a stock whose current price does not seem justified. It is therefore expected that the stock will drop in price.
Dictionary of Finance and Investment Terms: overvalued
overvalued
description of a stock whose current price is not justified by the earnings outlook or the Price/Earnings Ratio. It is therefore expected that the stock will drop in price. Overvaluation may result from an emotional buying spurt, which inflates the market price of the stock, or from a deterioration of the company's financial strength. The opposite of overvalued is undervalued.
