What does overvalued mean?
Overvalued describes something regarded as worth more than its actual or justified value. The term is especially common when discussing shares, property, currencies, businesses, and other assets whose prices may have risen beyond what their quality or prospects justify. It can also apply more broadly to a person, achievement, or work of art that receives more praise or attention than it deserves. Overvalued is related to the idea of valuation, but it normally carries a critical implication: the perceived value is excessive rather than merely subjective. The word is often contrasted with undervalued, which means that something is considered less valuable than it really is. In everyday discussion, it can be replaced by expressions such as 'too expensive' or 'not worth what people are paying,' though overvalued is especially useful for discussing broader questions of price, reputation, and perceived worth.
adjectiveHeld to be worth more than its actual price, quality, or genuine value. It can also refer to a person or thing whose importance or abilities are judged more highly than they deserve.
- Considered to be worth more than its justified price, quality, or utility.
- Regarded as more important, valuable, or impressive than it really is.
"The market cooled after investors realized that many of the technology stocks were overvalued."
"Analysts warned that the company's shares were overvalued."
"The museum's collection became the focus of a long-running dispute after critics described several celebrated works as overvalued."
A property can look overvalued before the market corrects itself—and sometimes long afterward.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of overvalued
The word was formed in English by combining the prefix over- with valued. Valued comes from value, which entered Middle English through Anglo-French and ultimately derives from Latin valere, meaning 'to be worth' or 'to be strong.' The related forms evaluate and evaluation preserve the same Latin root and its sense of determining worth.
Related word forms
How overvalued is actually used
Most common in finance, economics, property, and markets, but it can also be used more generally for people, achievements, or works of art. It is often more formal than the everyday expression 'not worth it' and generally implies that a comparison with an actual or reasonable value has been made.
Easily confused with overvalued
An overvalued item is regarded as worth more than its objective price or value, whereas an overrated item is praised or rated more highly than it deserves.