If a stock's market price is greater than its intrinsic value, it is generally expected that the stock is overvalued. This means that the stock is trading at a price higher than the fundamental value of the company. Over time, the market tends to correct such imbalances and the stock price may decrease to reflect its intrinsic value. Investors who recognize that a stock is overvalued may choose to sell their shares in order to realize a profit, or avoid buying the stock altogether. Conversely, if a stock's market price is lower than its intrinsic value, it is generally considered undervalued, and investors may choose to buy the stock in anticipation of a price increase.