Understanding Overestimation: Definition, Examples, and Consequences

Overestimate is a verb that means to estimate something too high, to be overly optimistic about the value or potential of something. It can also refer to the act of overvaluing or overrating something.

For example, if someone thinks that a project will take two weeks to complete but it actually takes four weeks, they have overestimated the time required. Similarly, if someone thinks that a product will sell for $100 but it only sells for $50, they have overestimated its value.

Overestimate can be used in various contexts such as business, sports, and personal life. For instance, a company may overestimate the demand for their product, leading to overproduction and financial losses. An athlete may overestimate their abilities, leading to disappointing performance. A person may overestimate their ability to complete a task, leading to missed deadlines or poor results.

In contrast, underestimate means to estimate something too low, to be overly pessimistic about its value or potential.