Overvalue

To place a higher value or worth on something than it actually possesses; to assess something as being more important, valuable, or expensive than is justified. This can apply to tangible items like assets or stocks, or intangible concepts like opinions, relationships, or skills. Overvaluation often stems from subjective biases, emotional attachments, or a lack of objective analysis, leading to potential financial or emotional repercussions. Recognizing the tendency to overvalue is crucial for making sound judgments and avoiding unfavorable outcomes.

Overvalue meaning with examples

• The tech startup's initial public offering seemed to overvalue the company, considering its limited revenue and unproven business model, leading to a significant stock correction soon after. Investors were clearly placing too much faith in its future potential.
• She began to overvalue her ex-boyfriend’s role in her life, dwelling on idealized memories and downplaying their relationship's issues, ultimately making it difficult for her to move on and form new relationships. This distorted perception of her past caused her pain.
• The art collector appeared to overvalue a particular painting, paying a price significantly higher than comparable works and market analyses indicated, likely due to a personal obsession with the artist and the artwork's aesthetic qualities.
• He tended to overvalue his own abilities, taking on responsibilities beyond his skillset and failing to deliver the promised results. His hubris blinded him to his limitations and caused problems for his team and himself.
• Parents often overvalue their children's achievements, praising them excessively even for minor accomplishments. While well-intentioned, this can hinder the child's development of resilience and a realistic self-assessment.