Using the dispersion of analyst forecast of first-day trading price and the turnover rate on the first trading day of IPOs to measure the divergence of opinions among investors in Chinese stock market from 2001 to 2007, this paper examines the relationship between the degree of divergence of opinion and the IPO overvaluation. The results show that the higher the dispersion of analysts' forecast and the higher the turnover rate on the first trading day, the higher the level of IPO overvaluation; the higher the deviation of the maximum forecast from the average, the higher the IPO overvaluation.