1. to reduce the price of something by too large a percentage or amount
Usage: third person singular present tense or plural form
2. to give excessive weight or importance to something; to overestimate the significance of
Usage: figurative use

1. excessive reductions in price; discounts that are larger than appropriate or sustainable
Usage: plural form

Examples

• The store overdiscounts its merchandise during clearance sales, sometimes losing money on inventory.
• Retailers that overdiscount their products may damage brand value in the long term.
• He overdiscounts the importance of customer service compared to price.
• The company's overdiscounts on seasonal items attracted bargain hunters but hurt profit margins.
• Financial analysts warned that the bank overdiscounts future earnings in its current valuation.
• These overdiscounts are unsustainable and will eventually force the business to raise prices.
• She tends to overdiscount her own abilities when comparing herself to colleagues.