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Overvalued

   Also found in: Dictionary/thesaurus, Legal 0.01 sec.
Overvalued
A stock price that is seen as too high according to the company's price-earnings ratio, expected earnings, or financial condition.

Overvaluation
In technical analysis, a situation in which a security has too high a price. This means that the technical indicators on the security do not justify its current price. Technical analysts may recommend selling overbought securities as they are due for a price correction. It can be difficult to determine whether or not a company is overvalued, but a high price-earnings ratio is one way. A price-earnings ratio over 1 indicates that the stock price is more than the company's earnings per share, which may mean that the company is overvalued. See also: Undervaluation.

overvalued
Of, relating to, or being a security that trades at a price higher than it logically should. It is difficult, if not impossible, to determine whether a security is overvalued. Compare undervalued.


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WILCOX Staff Writer Los Angeles is Southern California's least overvalued residential real estate market while the Inland Empire is the third most overvalued in the nation, a market tracker said Tuesday.
Home prices in California may be overvalued by as much as 26 percent, but it is "highly unlikely" that the Golden State's eventual market correction will result in a sharp price decline, according to a research report released by Orange, California-based Advanced Data Mining & Research Inc.
Evaluating valuation Another of the conference's primary topics involved analysis of long-term changes in housing prices and whether housing has been fairly valued, undervalued, or overvalued.
 
 
 
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