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 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.