1. to discount (a bill of exchange, promissory note, or other financial instrument) at an excessive rate
Usage: finance; banking
2. to reduce the price or value of something too much; to underestimate the importance or impact of something
Usage: general use

Examples

• The bank was criticized for overdiscounting the commercial paper, charging rates well above market standards.
• Investors should not overdiscount the long-term growth potential of emerging markets.
• The retailer decided to overdiscount inventory to clear warehouse space before the new season.
• Analysts warned against overdiscounting the impact of regulatory changes on the industry.
• The company overdiscounted its products so heavily that profit margins became unsustainable.