Comment by abannin

Whether or not the price falls within your expected range. Prices can rise faster than someone's perception of the price range, so the conclusion is that the asset is "overvalued". In other words, "overvalued" is a subjective conclusion that is weighted by human biases. What may be "overvalued" for one person might be "undervalued" for another. Another key component is the perception/faith of asset growth. Can the price of the asset continue to rise? If yes, then it is "undervalued".