There are a few different indicators that a stock might be overvalued or undervalued.
One indicator is the price-to-earnings ratio (P/E ratio). This ratio measures how much investors are willing to pay for each dollar of a company's earnings. A high P/E ratio could be a sign that a stock is overvalued.
Another indicator is the price-to-book ratio (P/B ratio). This ratio measures how much investors are willing to pay for each dollar of a company's book value. A low P/B ratio could be a sign that a stock is undervalued.
Finally, you can compare the market value of a company to its intrinsic value. The market value is what investors are currently willing to pay for the stock. The intrinsic value is what the stock is actually worth (you can find the company's intrinsic value using the methods above). If the market value is significantly higher than the intrinsic value, it could be a sign that the stock is overvalued.
When analyzing a stock, it is important to look at multiple indicators. This will give you a more complete picture of whether or not the stock is overvalued or undervalued.