Often used in discussions about markets, investments, or personal property valuation. Investors had a tendency to overvalue tech stocks during the dot-com bubble.
Pro Tip 2/3
Emotional Bias
Emotions can cause people to overvalue things they are attached to, like collectibles. He overvalued the car because it was his first ever purchase.
Pro Tip 3/3
Assumption VS Reality
Use it to point out when someone assumes greater value than what is supported by evidence. The vendor overvalued the gemstone, but the appraisal revealed its true worth.