fully valued

Fully Valued

A stock whose price analysts believe reflects the market's recognition of the company's underlying fundamental earnings power and therefore is unlikely to rise further in price. If the stock goes up from that price, it is called overvalued. If the stock goes down, it is termed undervalued.

Notes:

Fully valued stock belongs to companies that have disciplined plans for achieving dramatic long-term growth in both profits and revenues. Such companies must also have inherent qualities that make it difficult for new entrants into that business to share in such growth. Thus, investors who believe they are holding fully valued stock should hold it until either there has been a fundamental change in the company's nature or it has grown to a point where it will no longer be growing at a faster rate than the economy as a whole.

See also: Market Efficiency, Overvalued, Undervalued, Valuation

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Fully valued

Used in the context of general equities. Said of a stock that has reached a price at which analysts think the underlying company's fundamental earnings power has been fully recognized by the market.

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fully valued

Of or relating to a stock that is selling at a price most analysts believe fully reflects the company's asset values and earnings potential. If a stock is in fact fully valued, it generally has limited appreciation potential.