Overvalued

Business, Legal & Accounting Glossary

Definition: Overvalued


Overvalued


Full Definition of Overvalued


A stock is overvalued if its current price exceeds the intrinsic value of the stock. A stock perceived by the market as being overvalued is not likely to appreciate in value until it is no longer perceived as being overvalued. There are many ways to determine if a stock is overvalued. Many investors look at a stock’s price-earnings ratio (PE ratio) when determining an overvalued condition. A high PE in relation to its historic PE ratio may indicate an overvalued condition, or a high PE in relation to peer stocks can also indicate an overvalued stock. Other common measures of an overvalued stock include a comparison of stock price against a company’s cash flow, projected earnings, book value, dividend ratio, etc.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/overvalued/
Modern Language Association (MLA):
Overvalued. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 19, 2024 https://payrollheaven.com/define/overvalued/.
Chicago Manual of Style (CMS):
Overvalued. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/overvalued/ (accessed: April 19, 2024).
American Psychological Association (APA):
Overvalued. PayrollHeaven.com. Retrieved April 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/overvalued/

Definition Sources


Definitions for Overvalued are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February, 2020 | 0 Views.