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 ?
Last year, the international lender accused Kenya of propping up its shilling, saying that it is overvalued at by over 17 per cent.
A company with a higher PER than the average suggests the stock may be overvalued.
But this offers no satisfying answer to the flip side of the question posed by that headline: Is everything overvalued?
"The increase in rupee debt payment cost should be treated as a partial reduction in the subsidy to the government rupee expenditure on foreign debt payment through an overvalued exchange rate," he added.
While reliability deserves some premium, market perception can overpay a stock that even the most dependable blue chip in the market can become dangerously overvalued.
However, if stock prices expand at a faster rate than the economy, stocks will become overvalued. Here is an overly simplified example to provide clarity.
Egypt has been wrestling with a crippling dollar shortage that economists blame on an overvalued pound.
Loans were granted without the necessary collateral, property was overvalued, there were unjustified deposits to accounts, and gifts were used to get people to sign as guarantors.
In an analysis of select markets around the world, the report finds that housing markets in most cities studied are overvalued.
CoreLogic, Irvine, California, released a list of 14 overvalued local housing markets based on data through June 2015, and five of the markets were in the state of Texas.
Their analysis saw Anthony Martial rated as the most overvalued player in the summer, with Manchester United having paid some PS20.1m more for the Monaco forward than he was worth.
"Since 2013, a lot of property executives have said commercial real estate in New York is overvalued compared with property in other major cities.