The description of a stock whose current price is not justified by the earnings outlook or the price/earnings ratio. It is therefore expected the stock will drop in price.
Said of securities perceived to be too expensive (see "Fully valued").
A stock price which is perceived to be "too high," using a valuation model such as a price-earnings ratio that is much higher than that of other comparable stocks.
Said of a security whose price is not justified by its price/earnings ratio and thus, should eventually decline. See: Fully Valued; Price/Earnings Ratio; Undervalued
Describing a security trading at a higher price than it logically should. Normally associated with the results of option price predictions by mathematical models. If an option is trading in the market for a higher price than the model indicates, the option is said to be overvalued.
A stock whose current market price is estimated to be too high given the firm's earnings, growth potential or other criteria.
Description of a stock which seems to carry a higher price than fundamentals would suggest.
the perception that a security's price is too high, given the company's current value.
A stock analyst's determination that a stock is worth less than its current market value. An overvalued stock typically has a higher price-earnings ratio than other stocks in its industry or the market as a whole.
