Most assets do both because most assets, most of the time, aren't really/severely* under- or over-valued. But in general, a moving average can help in determini

Most assets do both because most assets, most of the time, aren't really/severely* under- or over-valued. But in general, a moving average can help in determining when they were under/over valued. As a counter-example, an example of "extremely overvalued" in my mind would be Enron before the fall. * https://en.wikipedia.org/wiki/Sorites_paradox https://en.wikipedia.org/wiki/Sorites_paradox EDIT: not so much "determining", but "defining" - you can only know it ex-post...