overvalued


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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.
References in periodicals archive ?
Meanwhile, the central bank said, 'Despite depreciating somewhat in recent months, the Swiss franc is still significantly overvalued.
Other overvalued housing markets that are still under their peak prices for the period before 2007 are in the Washington, D.
Miller expects the natural gas pipeline companies, master limited partnerships (MLPs) and natural gas producers will suffer substantially reduced earnings during the next 6-8 quarters and are also substantially overvalued at the current time.
But when the two measures of overvalued house prices and high debt were put together, the UK was considered to be the third most vulnerable economy.
Housing prices in the Los Angeles, Long Beach and Glendale metro area are currently overvalued by 2.
Although there were some crooks in the system, the root cause of the problem was not the people but the system in which they were operating--a system in which equity became so dangerously overvalued that many CEOs and CFOs found themselves caught in a vicious bind where excessively high stock valuations released a set of damaging organizational forces that led to massive destruction of corporate and social value.
Capital Economics expects price falls to be worse in northern regions, where it says property looks most overvalued in comparison with earnings.
Instead of depreciating, and thereby stimulating the necessary rise in interest rates, the yen remained overvalued, allowing interest rates to sink to zero, and causing Japan to remain stuck in the deflationary mire.
As overvalued assets are exposed, deal-maker CEOs are unable to manage through a trough in profitability and liquidity, and too many CEOs cling to the empires they have built and refuse to make the hard decisions.
Heizo Takenaka, state minister in charge of economic and fiscal policy, said Tuesday the yen has been recently overvalued against other major currencies.
HOUSES are overvalued by an average of about 10per cent, a top accountancy firm said today.
If manufacturing doesn't get any relief from the overvalued dollar and affect the exchange rate differential with the world market, then work will continue to go to China and other low-cost offshore nations.