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1. (v.t.) overcapitalize
to capitalize in excess of legal limits or sound financial policy.
2. overcapitalize
to overestimate the capital value of (a property or enterprise).
Etymology: (1885–90)
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| Definition of 'overcapitalize' |
Princeton's WordNet |
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1. (verb) overcapitalize, overcapitalise
estimate the capital value of (a company) at an unreasonably or unlawfully high level
2. (verb) overcapitalize, overcapitalise
overestimate the market value of
"overcapitalize a property"
3. (verb) overcapitalize, overcapitalise
capitalize beyond what the business or the profit-making prospects warrant
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Definitions of overcapitalize 
