Overvalued

Definition:

A stock price that is seen as too high according to the company's price-earnings ratio, expected earnings, or financial condition.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Return on sales

A measurement of operational efficiency equalingnet pre-tax profits divided by net sales expressed as a percentage.

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