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Overvalued: meaning, definitions and examples

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overvalued

 

[ ˌoʊvərˈvæljud ]

Adjective
Context #1 | Adjective

stock market

Having a higher value than justified by the fundamentals of a company or asset. It is often a subjective judgment based on factors such as market sentiment and speculation.

Synonyms

inflated, overpriced, overrated.

Which Synonym Should You Choose?

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Word Description / Examples
overvalued

Use this word when talking about something, often in financial contexts, that has a higher value put on it than it justifiably should. Typically used in investing or real estate scenarios.

  • The company's stock is overvalued given its earnings report.
  • The house is overvalued due to its location.
overrated

Use this word to refer to something whose reputation or perceived value is higher than it deserves. It is often used in discussions about opinions, like entertainment or restaurants.

  • I think that movie is overrated.
  • The restaurant is overrated; the food was mediocre.
overpriced

This word fits well when the price of an item is higher than what most people would consider reasonable or fair. It is often used in everyday situations.

  • The coffee at that shop is overpriced.
  • I think the new smartphone is way overpriced for its features.
inflated

This word works best when describing prices or figures that are artificially high. It often implies manipulation or exaggeration.

  • The cost for medical treatments has been inflated by insurance companies.
  • The CEO's salary seems inflated compared to the average employee.

Examples of usage

  • The overvalued stock experienced a sharp decline in value once investors realized the true state of the company.
  • Many experts believe that the housing market is currently overvalued and due for a correction.
  • Investors should be cautious when buying overvalued assets, as they may be at risk of significant losses.
  • An overvalued currency can negatively impact a country's export competitiveness.
  • Overvalued assets can create bubbles in the market, leading to economic instability.

Translations

Translations of the word "overvalued" in other languages:

🇵🇹 supervalorizado

🇮🇳 अतिमूल्यांकित

🇩🇪 überbewertet

🇮🇩 terlalu dihargai

🇺🇦 переоцінений

🇵🇱 przeceniony

🇯🇵 過大評価された

🇫🇷 surévalué

🇪🇸 sobrevaluado

🇹🇷 aşırı değer biçilen

🇰🇷 과대평가된

🇸🇦 مبالغ في تقديره

🇨🇿 nadhodnocený

🇸🇰 nadhodnotený

🇨🇳 被高估

🇸🇮 precenjen

🇮🇸 ofmetinn

🇰🇿 құны жоғары бағаланған

🇬🇪 გადაფასებული

🇦🇿 dəyərləndirilmiş

🇲🇽 sobrevalorado

Etymology

The term 'overvalued' originated in the financial sector to describe assets or securities that are priced higher than their intrinsic value. This concept is closely related to the idea of market efficiency and rational pricing. Overvaluation can occur due to various factors, such as speculation, market hype, or investor sentiment. Identifying overvalued assets is crucial for investors to make informed decisions and avoid potential losses. The phenomenon of overvaluation has been a topic of discussion among economists and financial analysts for decades, especially in the context of stock markets and real estate. Understanding the dynamics of overvaluation is essential for maintaining a stable and efficient financial system.

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

Word Frequency Rank

At rank #26,573, this word represents specialized academic or technical vocabulary. It's less frequently encountered but may be valuable in specific contexts.