Overvalue Meaning: Definition, Examples, and Translations

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overvalue

[ˌəʊvəˈvæljuː ]

Definitions

Context #1 | Verb

financial

To estimate the value of something too highly.

Synonyms

exaggerate, inflate, overestimate.

Which Synonym Should You Choose?

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Word Description / Examples
overvalue

This word is used when someone gives too much worth or importance to something, often in a financial or evaluative sense. It can also imply emotional or subjective bias.

  • Investors tend to overvalue tech startups.
  • She overvalued his advice, thinking it was always correct.
overestimate

Overestimate is used when someone thinks that some quantity, ability, or value is higher or better than it truly is. It usually implies a specific judgment or calculation error.

  • I overestimated how much time the project would take.
  • He overestimated his ability to climb the mountain.
inflate

This word is often used in financial or economic contexts to describe the action of increasing prices or quantities unnaturally. It can also describe making something appear more significant than it is.

  • The company was accused of inflating its sales figures.
  • They inflated the balloon using a pump.
exaggerate

Exaggerate is used when someone makes something seem larger, better, or more important than it really is. Often relates to storytelling or describing events and can imply dishonesty or dramatic effect.

  • He tends to exaggerate his achievements to impress others.
  • She exaggerated the impact of the new policy.

Examples of usage

  • He tends to overvalue his possessions when calculating his net worth.
  • She warned him not to overvalue the company's stock.
  • The real estate market is known to overvalue properties in certain areas.
Context #2 | Verb

general

To place too high a value on something.

Synonyms

overemphasize, overprize, overrate.

Which Synonym Should You Choose?

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Word Description / Examples
overvalue

Listed twice, same as the first entry regarding assessing worth or importance.

overrate

Commonly used in everyday conversation to indicate that something is given too much credit or regarded more highly than it deserves. Often has a negative connotation.

  • The movie was overrated; it didn't live up to the hype.
  • Many people overrate their ability to multitask effectively.
overprize

Rarely used, it refers to placing too high a value or importance on something, might often involve subjective or personal valuation.

  • He tends to overprize his rare book collection, thinking it's worth more than it truly is.
  • Collectors often overprize items with sentimental value.
overemphasize

Appropriate when discussing situations where excessive importance or stress is placed on a particular point or aspect.

  • Teachers sometimes overemphasize the importance of standardized test scores.
  • Don't overemphasize minor details; focus on the bigger picture.

Examples of usage

  • It is easy to overvalue the importance of material possessions.
  • People often tend to overvalue their own contributions to a group project.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Economics

  • In economics, overvaluation can lead to market bubbles, where asset prices rise rapidly beyond their true worth.
  • Historically, the dot-com bubble in the late 1990s was a classic example, where many tech stocks were overvalued before the market crashed.
  • An overvalued currency can affect international trade, making exports more expensive and imports cheaper, potentially harming local industries.

Psychology

  • Overvaluing possessions can be linked to emotional attachment, where personal value overrides monetary worth.
  • Cognitive biases, such as the 'sunk cost fallacy,' can lead individuals to overvalue investments they've already made, even if they are no longer beneficial.
  • Social influence can also cause overvaluation, as peer pressure can lead people to inflate the worth of trends or items simply because they are popular.

Pop Culture

  • In popular media, the concept of overvaluation is explored in movies like 'The Big Short,' which illustrates how financial illusions can mislead entire markets.
  • Many reality TV shows glamorize overvaluing lifestyles, where cast members frequently show off luxury items that may not hold actual long-term value.
  • The phrase 'keeping up with the Joneses' embodies the social tendency to overvalue material possessions that others possess.

Literature

  • In literature, characters often face dilemmas involving overvaluation, like in 'The Great Gatsby,' where wealth and status are misinterpreted as measures of happiness.
  • Shakespeare explored themes of overvalue in 'King Lear,' where the protagonist misjudges the loyalty and love of his daughters based on material gifts.
  • Modern novels often depict the folly of overvaluing youth and beauty, leading characters to tragic ends as they chase after temporary values.

Origin of 'overvalue'

Main points about word origin

  • The word 'overvalue' is derived from 'over,' meaning excessively, and 'value,' which comes from the Latin 'valere,' meaning to be worth.
  • It first appeared in the English language in the late 19th century, evolving from earlier uses of 'value' into a concept of excessive worth.
  • The prefix 'over-' adds a sense of excess, indicating a departure from a balanced or reasonable consideration of worth.

The word 'overvalue' originated from the combination of 'over-' and 'value', dating back to the early 19th century. It has been used in various contexts, especially in financial and general discussions, to indicate an excessive estimation or placement of value on something.


See also: devaluation, devalue, evaluable, invaluable, overvaluation, overvalued, revaluation, undervaluation, undervalue, undervalued, unvaluable, unvalued, valuable, valuables, valuation, valuator, valued, valueless, values, valuing.

Word Frequency Rank

Ranking #37,237, this word is encountered relatively rarely in everyday English. It might appear in literary works or specialized texts but isn't essential for general communication.