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Overvalued: meaning, definitions and examples

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overvalued

 

[ˌoʊvərˈvæljud ]

Definition

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.

Interesting Facts

Economics

  • A common reason for something being considered overvalued is when people pay too much for it based on hype rather than real worth.
  • In stock markets, analysts look for overvalued companies to advise investors on when to sell.
  • Economic bubbles form when many things are overvalued, leading to a market crash.

Psychology

  • Cognitive biases can lead people to overvalue possessions, believing they are worth more simply because they own them.
  • The endowment effect is a psychological phenomenon where people assign more value to things merely because they possess them.
  • Overvaluing can also occur in relationships, where one partner may see the other in an exaggeratedly positive light.

Real Estate

  • In real estate, properties might be overvalued due to trends or a rapidly increasing market, leading to potential losses for buyers.
  • Appraisal methods are used to calculate a property's real worth, helping buyers avoid overvalued homes.
  • Exterior factors, such as location or market changes, can contribute to a property being deemed overvalued.

Sociology

  • Cultural factors can lead to overvaluation of certain lifestyles or possessions, affecting societal values and aspirations.
  • Social media can contribute to overvaluing material possessions by showcasing idealized versions of wealth and success.
  • People often overvalue items that symbolize status or prestige, driven by societal pressures.

Pop Culture

  • Movies often portray characters who overvalue material possessions, showing the disparity between wealth and happiness.
  • Music lyrics sometimes express themes of overvaluation in love or relationships, addressing emotional worth in a humorous light.
  • Trends in fashion can lead to overvaluing specific items, causing consumers to spend excessively based on social influence.

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

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.