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overvaluation

[oh-ver-val-yoo-ey-shuhn]

overvaluation Definition

an estimation of the value of something that is higher than its actual worth or market value.

Using overvaluation: Examples

Take a moment to familiarize yourself with how "overvaluation" can be used in various situations through the following examples!

  • Example

    The overvaluation of the company's stock led to a significant drop in its price.

  • Example

    The real estate market is experiencing an overvaluation due to speculation and low interest rates.

  • Example

    The government's policies have contributed to the overvaluation of the national currency.

overvaluation Synonyms and Antonyms

Antonyms for overvaluation

Phrases with overvaluation

  • a situation where a country's currency is valued higher than its actual worth, leading to negative effects on the economy

    Example

    The government's efforts to maintain the currency overvaluation have resulted in a decrease in exports.

  • a situation where the market value of an asset is higher than its intrinsic value, leading to a potential bubble

    Example

    The housing market experienced an asset overvaluation prior to the 2008 financial crisis.

  • a situation where the market value of a company's stock is higher than its actual worth, leading to a potential correction

    Example

    The stock market is currently experiencing a period of overvaluation, with many companies trading at high multiples.

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Summary: overvaluation in Brief

The term 'overvaluation' [oh-ver-val-yoo-ey-shuhn] refers to an estimation of the value of something that is higher than its actual worth or market value. It can apply to various contexts, such as stocks, assets, or currencies, and can lead to negative effects on the economy. Examples include 'The overvaluation of the company's stock led to a significant drop in its price.' and 'The real estate market is experiencing an overvaluation due to speculation and low interest rates.'