Fully Valued


DEFINITION of 'Fully Valued'

A stock whose price analysts believe reflects the market's recognition of the company's underlying fundamental earnings power and therefore is unlikely to rise further in price. If the stock goes up from that price, it is called overvalued. If the stock goes down, it is termed undervalued.


Fully valued stock belongs to companies that have disciplined plans for achieving dramatic long-term growth in both profits and revenues. Such companies must also have inherent qualities that make it difficult for new entrants into that business to share in such growth. Thus, investors who believe they are holding fully valued stock should hold it until either there has been a fundamental change in the company's nature or it has grown to a point where it will no longer be growing at a faster rate than the economy as a whole.

  1. Oversold

  2. Ovoboby

    A condition in which a market is considered to be overbought, ...
  3. Overbought

  4. Valuation

    The process of determining the current worth of an asset or company. ...
  5. Market Efficiency

    The degree to which stock prices reflect all available, relevant ...
  6. Upside

    The potential dollar or percentage amount by which the market ...
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