$show=home

Welcome to Svtuition

Free Online School with 5000+ contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home


Science Classes




Basic Sciences






Computer Science

                                   

Personal Finance 

Money Making

Investment  

Finance Data Analysis

Corporate Finance 

Finance Services

Public Finance

Taxation
                                   





/fa-fire/ Latest Contents$type=three$cate=0$va=0$show=home$c=3$m=0$rm=0$s=0

$show=home

"Thank you sir you did a good job for students through Svtuition. I have learn many things"

S.U. Rahman

"First time I have so happy to find Svtuition I spent a lot of time searching for my problem now I have finally understood the concept at Svtuition"

Anonymous

"All doubts clear sir.Svtuition is a very good teacher.thanks"

Sathyam Guha

"Sir I am learning through your website and I am really grateful to you for taking out your time to teach us in Svtuition."

Himansh

"Svtuition is very usefull to me ....today i have learn great things at Svtuition....very usefull tips provide for me.....today i have to start my own learning experience through this website.......Thanks bro....God Bless U. "

Jeevan Kumar

"Nice👌 and informative Site, Keep doing the good work "

Divyanshu

/fa-fire/ Science$type=three$cate=0$va=0$show=home$c=6$m=0$rm=0$s=0

$show=home

Learn Financial Freedom Step by Step

What is Overvaluation

 

Recently, you read the news of Adani Case in which Hindenburg report blames that Adani increased his share price artificially through market manipulation. It is also question, is Hindenburg report true or not. But if you are new in share market and finance, you should know what is overvaluation. 

Overvaluation is the current market price which more than its current financial assets. 

Suppose, A company share is Rs. 100 and it has 1000 share holders , so total current value is Rs. 1,00,000 but actual net assets after deducting all liabilities, it is 75,000 , then its actual value of share must be Rs. 75. 

There are lots of Reasons of Overvaluation of Share of any company

1. Time period is boom period and people are over confident and regular buy of share, so, its value increases than its actual net worth.

2. Company promoters and owner did large number of marketing. Whether it is true or not, it is different concept but it makes the blind to investor and they started to buy more and more in the demat account, so, price overvalued. 

3. Company started benami transaction through accounting fraud and market manipulation in which it makes foreign companies. First of all foreign companies inflow the cash and it shows as Sale and income. but no record of actual sale. Now, this increased the net profit in the financial statements. 

Now Price / Earning ratio has increased and it attract more and more new investors and they started to buy shares. Supply less and demand artificially increased due to this and it has increased its price. So, stock became overvalued. Now for more increased the price, same company got the big loan on overvalued shares and same loan, then buy all the properties and attract more and more investors that it has big properties. 

How can find this overvalued shares 

Simple 

Buy one share from DEMAT Account and weight 2 years and see how much it has given dividend. It nil, it means, it does not have any earning to give reward to investor who invested his hard earned money. 

Read Also 

What is Undervalued Share?

How to Decide which share is Overvalued?

With following calculation, we can decide which share is overvalued or which is share is averaged or which share is undervalued?

Price Earning Ratio

Price earning ratio is the ratio between price of share and earning on same equity share capital. Means, we can calculate price per share which is divided by earning per share. 

If price of any share is 1000 but its earning per share is 8, it means for earning just 80 paisa, it has to invest Rs. 100. It means, same company has fake asset which does not generate income for share holders. 

So, investor must focus not to invest in such shares. 


2. Price Book Ratio (P/B Ratio) 

It is the ratio of per share market price and per book value asset

per book value of asset = total asset / total no. of shares in the market

if the market price of share is more than book value of share, it is overvalued shares, and it should not be bought. 

3. Company has big loan

COMMENTS

On this page

$type=blogging$show=https://www.svtuition.com/p/ashwani-kumar.html$c=100$a=hide$s=hide$comment=hide

$type=blogging$show=https://www.svtuition.com/p/chanakya.html$c=10$a=hide$s=hide$comment=hide

$type=blogging$show=https://www.svtuition.com/p/ashwani.html$c=100$a=hide$s=hide$comment=hide$label

$type=blogging$show=https://www.svtuition.com/p/ashwani.html$c=40$a=hide$s=hide$comment=hide

$type=blogging$show=https://www.svtuition.com/p/ashwani.html$c=100$a=hide$s=hide$comment=hide$label

$type=blogging$show=https://www.svtuition.com/p/ashwani.html$c=40$a=hide$s=hide$comment=hide

$type=blogging$show=https://www.svtuition.com/p/rajesh-kumar-teacher.html$c=40$a=hide$s=hide$comme

$type=blogging$show=https://www.svtuition.com/p/ashwani.html$c=100$a=hide$s=hide$comment=hide$label

$type=blogging$show=https://www.svtuition.com/p/om-parkash.html$c=20$a=hide$s=hide$comment=hide

$type=blogging$show=https://www.svtuition.com/p/surinder-singh.html$c=20$a=hide$s=hide$comment=hide

$type=blogging$show=https://www.svtuition.com/p/surinder-singh.html$c=20$a=hide$s=hide$comment=hide

$type=blogging$show=https://www.svtuition.com/p/surinder-singh.html$c=20$a=hide$s=hide$comment=hide

$type=blogging$show=https://www.svtuition.com/p/abhiraj-singh.html$c=20$a=hide$s=hide$comment=hide

$type=blogging$show=https://www.svtuition.com/p/nishant-arya.html$c=20$a=hide$s=hide$comment=hide

$type=blogging$show=https://www.svtuition.com/p/manish.html$c=20$author=hide$comment=hide

Tara Chand's Contents $type=blogging$show=http://www.svtuition.com/p/tara-chand.html$c=20

Ashok Kumar's Contents$type=blogging$show=https://www.svtuition.com/p/ashok-kumar.html$hide=author

Name

11th Class Maths,2,11th Class Physics,6,5th Class Maths,1,6th Class Science,9,Abhiraj Singh,1,Accountant,2,Accounting,14,Accounting Concepts,1,Accounting Course,4,Accounting Education,18,accounting equation,3,Accounting Formats,2,Accounting Scandals,1,Accounting Solutions,37,Accounting Videos in English,1,Accounting Videos in Hindi,9,Administration Skills,2,Air,7,Algebra,11,Amazon,7,Answer the Questions and Become Master,23,App,6,Applied sciences,3,Aptitude,1,Artificial Intelligence,2,Ashok Kumar,5,B.Com Maths,9,Balance Sheet,8,bank,59,Banking,37,Banking Dictionary,1,Become Rich in India,25,bengali,4,Best Teachers Rewards,1,BHIM,3,Biology,4,Black Money,1,Bodybuilding Education,5,Bond,4,Budget,2,Business,11,Business Dictionary,3,Business Education,10,Business Environment,2,Business Mathematics,8,Business Skills,1,Business Solutions,1,C++,1,CA,1,Calculus,1,cameras,2,Canara Bank,3,Canva,1,capital,1,car,1,Car Driving Course,57,Care of pet,1,Career Solutions,12,carpentry,14,cartoon,1,Cattle Domestication Skill,3,Cattle Domestication Skill,1,CDSL,4,Charity,1,chemistry,3,circle,2,Class 1 English,1,class 1 Maths,1,Class 10 Maths,11,Class 2 Maths,1,Class 5 Maths,2,Class 6 Maths,1,Class 7 Maths,1,Class 8 Maths,17,Class 9 Maths,1,Commerce,4,commodity market,1,Communication,5,Computer,28,Computer Basics,30,Computer Data Storage,1,Computer Dictionary,2,Computer Hardware,11,Computer Networking,12,computer science,5,Computer Software,17,Computer Solutions,1,Construction Skills,25,cooking education,25,Cooking Skills by Ashwani,57,Corporate Accounting,17,Corporate Law,5,corporate Scandals,1,cost,2,cost accounting,13,Credit Card,7,CSE,1,css,11,Currency,1,Current Affairs,2,curtain,1,Dailymotion,1,Debit Card,1,DEMAT Account,13,depreciation,2,determinant,3,Domain Name System,4,Dr. Mathura Das,5,Dr. MD Swatanter,1,drawing,1,Dreams,19,Driving Education,1,e-accounting,1,Earn from eBooks,13,Earn Money,28,Earning,2,eBooks,9,Economics Education,33,Education,14,Education Solutions,12,Electric Cycle,4,Electric Scooter,1,Electrical engineering‎,28,Electrical Skills,19,Electrical Skills by Ashwani Kumar,12,Electronics,4,Email,2,Energy (physics),10,Engineering,2,English,23,Examination,3,Facebook,2,Failure,4,Finance,113,Finance Education,45,Finance Solutions,9,financial,3,Financial Accounting,28,Financial Service Providers,2,FIR,7,Focus on Study,8,Football,1,Forex,2,Forex Trading Skills,2,Free Maths Tools,1,Fundraiser,1,Gambling,10,Gambling Addiction,4,Gardening Skills,17,Gas,1,Gaupalan,5,Geometry,3,gold,5,Goldsmith,35,Google,2,Google Admin,3,Google AdMob,2,Google Adsense,2,Google Blogger,7,Google Meet,1,Google Pay,4,Google play Console,6,Google Play Store,7,Gravity,4,GST,2,Guest Writers,3,Gurpreet Singh,14,Habits,4,HDFC,1,HDFC Bank,1,Health Education,16,Heat,2,Help,3,Hindi Language,3,History,2,Home Building,10,Home Maintenance amp; Repair,5,Home Remedies Course,75,HR Management,11,HTML,9,Income Tax,1,Index Number,3,India,15,India Post Payments Bank,7,Indian Festivals,4,Indian Language,1,Influencer marketing,1,Infolinks,5,Inspiration,26,inspire,2,Instagram,2,insurance,3,intelligence,1,Interest,6,internal audit,2,International Finance,1,Internet,43,Internet Forum,1,Investment,31,Javascript,3,Jobs amp; Careers,5,Journal,1,journal entries,5,journal entry,3,Kenya,1,Knot Skills,1,Laptop Basics,7,Law Education,26,Law Solutions,2,Learning,8,Lecture,2,Legal Document,2,Legal Education,15,Letter Formats,2,LIC,1,Light,7,Limit,2,Linear algebra,5,Linear Programming,12,Loan,3,magnet,8,Malaysia,2,Management Accounting,17,Management Education,17,Management Solutions,1,Manish Khurana,4,Marketing Education,7,Mathematics Education,134,Maths,1,Maths by Ashwani Kumar,35,matrices,43,MCAT,1,Mechanical Skills,3,Medical and Surgery Education,1,Memories,2,Mobile,19,Mobile Software,17,motivation,41,Motorcycle Mechanic Skills,8,MS Excel,12,Music Skills,3,Mutual Funds,5,Nepal,1,Nepali Language,1,Net Banking,1,Network addressing,2,Nigeria,1,Nishant Arya,11,Om Parkash,11,Online,1,Online Teachers Support,2,organisation,1,Other,15,Pakistan,1,Payment Service Providers,15,Payoneer,1,paypal,12,paytm,10,PayU,2,PERSONAL DEVELOPMENT,1,Personal Finance,13,Philippines,2,Photography,1,Photoshop Software,5,PHP,1,physics,60,Picture,1,Plumbing Education,9,PNB,4,Political Science,3,Polynomial,9,positive thinking,1,Post Office,6,Probability,9,Prof. Ashwani Kumar,3,Profiles,1,Profit,1,Programming Language,13,Property Dealing Skills by Surinder Singh,5,provision,1,Publishing,1,Punjabi Language,4,Quiz,3,Railway Exam,2,Railway Technical Exam,2,Rajesh Kumar,34,RBI,3,real estate,10,Reasoning,2,rectification,1,rectification of errors,1,Relationships amp; Family,3,Religious Studies,7,Result,2,Sahas,3,Sanskrit,10,Saudi Arabia,1,Saving,14,SBI,11,School Accounting,2,science,86,Science Education,63,Science Quize,1,Science Tests,7,Secrets of Failure,2,Security,2,Self Identity,1,Self-Learning,8,Share Market,48,Share Market Dictionary,8,Shiv Kumar Shabdra,1,Silversmith,4,Singing Skills,20,Singing Skills by Surinder Singh,7,Skating,1,Slideshow,1,Social Media,3,social science,5,Solution,5,Sound,5,Space Science,6,Special Days,1,Spiritual Education,11,Sports,7,Start Own Business,12,Statistics,12,Statistics Education,4,stock,3,Stock Market,4,Stories,2,Story,1,Students,5,Success,16,Surinder Singh,18,svtuition,4,Tablet Education,7,Tailoring Skills,4,Tally,71,Tally Solutions,9,Tally.ERP 9,92,TallyPrime,9,Tara Chand,14,tax,8,Tax Solutions,8,teaching,7,Teaching by Chanakya,2,Teaching Education,18,Teaching Skills,1,Teaching Stories,1,Tech by Ashwani,8,Tech Simplify,20,technical education,3,Telecommunication,1,Test,9,Testimonials,3,Time Management,2,Time series,3,Travel,10,Trigonometry,7,tuition,4,TV Shows,4,UK,2,USA,1,variance analysis,3,VAT,1,vector,22,Video,31,Video Creation Skills,1,Video Editing,4,Video on Demand,1,VideoPad Video Editor,1,videos,180,Vocational Education,19,Volume,1,Water,8,Wealth,35,Weather,3,Web design,5,Web Hosting,7,Web Software,3,website,23,Website earning,1,Welding Skills,2,WhatsApp,8,Wife,1,Wifi,9,Window Movie Maker,1,Wordpress,6,working capital,1,Writing,1,written Communication,2,Yono App,2,Yono Cash,1,You can Become Rich Also,5,Youth,9,youtube,21,YouTube Studio skills,1,YouTube Tutorials,7,zigopay,1,
ltr
item
Svtuition: What is Overvaluation
What is Overvaluation
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFY2wUi9aQsDFa2RAjEzHJq3PVGvNAjYJWbJnuSrMja_pMy0RTmNJUcfIEAP2X34yib26lp37w4BzzcEBW-BWgPrXQidtvGblfeAQwTubgOL7kbzWGkRDZrV_UVVb6ebtODGAbKxayVNG9mNEFWD6XT_fmRp9sMoXhDM87JXupquwGhUPTLaK_6rBt/w640-h366/value.png
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFY2wUi9aQsDFa2RAjEzHJq3PVGvNAjYJWbJnuSrMja_pMy0RTmNJUcfIEAP2X34yib26lp37w4BzzcEBW-BWgPrXQidtvGblfeAQwTubgOL7kbzWGkRDZrV_UVVb6ebtODGAbKxayVNG9mNEFWD6XT_fmRp9sMoXhDM87JXupquwGhUPTLaK_6rBt/s72-w640-c-h366/value.png
Svtuition
https://www.svtuition.com/2023/02/what-is-overvaluation.html
https://www.svtuition.com/
https://www.svtuition.com/
https://www.svtuition.com/2023/02/what-is-overvaluation.html
true
3065238051582539150
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy