What is an estimate of consensus?

Consension estimate is estimated to be based on several aspects in the future, some solid and some assume. This is often done in quarter and annually, and is usually done by the company to manage and try to increase stock prices. Many analysts are commonly used and their estimates are diameter together for the entire estimate of the consensus. Other factors include factors used to obtain this estimate of the price of shares, opinions and financial projection. The problem of using this estimate method is that it is rarely accurate because business and analysts do not know what will actually happen in the future.

When a consensus estimate is done, it is usually done for a quarter, year or both. One of the reasons he does this is that business knows how it is doing on the basis of these estimates; For example, a low estimate can show business that with one of the factors of estimation is something bad and the company can then be repaired for a better estimate or result. Another reason is that stock prices may temporarily increase, PThe estimate is high, and it can bring more money from investors.

One analyst rarely performs this type of estimate, even if a small company is evaluated. Each analyst either looks at one factor of the company, or everyone looks at the company as a whole and comes with a complete estimate. If the former, then all estimates are together to obtain a consensus; If the latter is mentioned, the estimates are diameter and this diameter becomes a consensus.

For the analysis of the future income of the company, many factors are used. Some solid information that can be quantified includes the current stock price, financial projection and current growth increase. One aspect that is usually less reliable is the opinion, for example, how much money you think a new product will bring to the company.

future events usually do not follow exactly estimates and models, so the estimate of consensus is rarely accurate. This can cause a mass pEmerge prices of company shares and can even cause it in the company if the estimate of consensus is much higher than the current income of business. When real financial reports come out and investors check them, stock prices usually increase or reduce depending on these more accurate numbers.