overvaluedundervalued
Overvaluedundervalued is a concept used in financial analysis to describe the perceived price of an asset relative to its intrinsic value. An asset is considered overvalued when its current market price is significantly higher than what its fundamental analysis suggests it should be worth. Conversely, an asset is deemed undervalued when its market price is substantially lower than its intrinsic value.
The determination of overvalued or undervalued status is subjective and relies on various valuation methods. These
For example, a stock might be considered overvalued if its price-to-earnings ratio is considerably higher than
Identifying overvalued and undervalued assets is a core strategy for many investors. Those who believe an asset