Definition

A situation where something is considered to be worth more than it actually is.

Example

The overvaluation of the property led to significant financial losses for the investors.

Conversation

Have you heard about the overvaluation of that tech company?

Yeah, I read an article about it. It seems a bit exaggerated.

Right? It's surprising how much hype there is around it.

Totally! I just hope people don't get burned by that overvaluation.

Synonyms & Antonyms

Root Explanation

Overvaluation → It is formed from "over-" (meaning excessively) and "valuation" (from Latin "valere", meaning to be strong or to be worth). The word refers to the act of assigning an excessively high value to something.

Memory Tip

Think of assigning value 'excessively' ('over-') to something's worth ('valuation'). This helps you remember that overvaluation means giving something too much value.

Visually Confused Words