👉 Overvaluation is a financial concept where an asset or company's value is higher than its market price due to factors such as speculation, excessive demand, or mispriced earnings. In other words, it refers to the difference between a company's actual cost and its market valuation. This can occur when there is a significant overpayment for the assets, making them seem more valuable than they are. Overvalued assets are often seen as undervalued by investors and may lead to lower returns on investment