Overvalued: meaning, definitions and examples

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overvalued

[ ˌoʊvərˈvæljud ]

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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

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

Word origin

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.