Or, if it's an umbrella seal it will be inside of the spring, but, umbrella seals are designed to ride up and down with the valve stem. They may be down over the guide after being assembled initially but will take position on the stem after initial startup and ride up and down with the stem from then on. The amount of valve lift will position the umbrella seal on the valve stem.
If you see an umbrella seal that is sitting down on the guide on an engine that is already in service, the seal is bad.
If you see an umbrella seal that is sitting down on the guide on an engine that is already in service, the seal is bad.