👉 Overvaluation is a financial statement that indicates an inflated or exaggerated valuation of a company's assets. This can occur when a company buys more assets than it actually has, and then sells them at a higher price than they are worth, often in order to capitalize on rising prices. For example, if a company buys 100 units of a stock for $1 each and then sells these units at a much higher price (say, $3 each), the overvaluation would be seen as being