overvalued


Also found in: Dictionary, Thesaurus.
Related to overvalued: overvalued idea

Overvalued

A stock price that is seen as too high according to the company's price-earnings ratio, expected earnings, or financial condition.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
Mentioned in ?
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.
Shilling overvalued by 30 per cent - Amana Capital
A company with a higher PER than the average suggests the stock may be overvalued.
Are Korean drug makers overvalued?
But this offers no satisfying answer to the flip side of the question posed by that headline: Is everything overvalued?
Think of new ways to decide whether stocks are costly
"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.
Rupee devaluation not the solution
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.
How much premium should you pay for earnings growth?
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.
The Flaws in Buffett's Favorite Stock Market Indicator
Egypt has been wrestling with a crippling dollar shortage that economists blame on an overvalued pound.
Egypt non-oil business activity slows for ninth straight month in June
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.
New remand for 13 in Ayia Fyla co-op scam
In an analysis of select markets around the world, the report finds that housing markets in most cities studied are overvalued.
Most cities overvalued according to UBS Global Real Estate Bubble Index
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.
Austin tops overvalued markets list
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.
Thauvin was real bargain for Toon
"Since 2013, a lot of property executives have said commercial real estate in New York is overvalued compared with property in other major cities.
New survey shows owners believe pricing has peaked

Financial browser ?
Full browser ?