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
Synonyms for overvaluation
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.
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.'
